North Korea's state media has denied that Pyongyang has printed counterfeit bills nor taken part in illegal trading.

The Korea Central News Agency in a Thursday commentary called counterfeiting "unthinkable" considering the nature and mission of the North's government.

It blasted a Los Angeles Times report that quoted an unidentified North Korean escapee as fabricated.

The commentary said Western news agencies like the Associated Press and AFP have grown increasingly sympathetic to a more hardline policy towards the North as support for U.S. President George W. Bush wanes.

It also said the only way Bush could escape isolation is for Washington to lift U.S. financial sanctions on Pyongyang and immediately return to the six-party talks.