Japan's Nihon Keizai Shimbun newspaper says North Korea has been building and deploying intermediate-range ballistic missiles capable of reaching U.S. military targets in Hawaii and Guam.

The daily was citing testimony to the National Assembly Defense Committee by South Korean Defense Minister Cho Young-gil on Wednesday.

The paper said it was the first time Seoul has officially acknowledged North Korea's production and deployment of intermediate range ballistic missiles.

The reports forecast that Pyongyang's missile deployment, if confirmed, would have negative effects on the resumption of six-way nuclear talks and discussions on the normalization of diplomatic ties between North Korea and Japan.

At May summit talks in Pyongyang with Japanese Prime Minister Junichiro Koizumi, the North Korean leader had agreed to extend a moratorium on missile testing .