Japan's Kyodo News Agency says the U.S. State Department plans to re-designate North Korea as a terrorist-sponsoring nation in its annual report on international terrorism.

The State Department also reportedly plans to mention the abduction of Japanese nationals to North Korea in the report.

As the abductee issue has never before been mentioned in the annual report, insiders believe it will hamper the North even further in its efforts to shed its status as a state sponsor of terrorism.