North Korea says it will demand U.S. compensation over the scrapping next month of the light-water reactor project of the Korean Peninsula Energy Development Organization.

The spokesman of the North's Foreign Ministry on Monday said Washington has completely annulled the 1994 Framework Agreement that called for the project and caused huge damage to Pyongyang.

He did not elaborate on what compensation should be made, but said the termination was predicted.

The United States and KEDO last week decided to scrap the reactor project that was suspended in 2003.