The United States is calling North Korea's threat to unilaterally cancel all contracts regarding the inter-Korean joint venture at the North's city of Gaeseong "unhelpful."

A daily briefing by U.S. State Department spokesman Ian Kelly urged Pyongyang's restraint. He said Washington has seen reports that North Korea may cancel the contracts at the Gaeseong Industrial Complex and that such a precipitous action would be unhelpful and a step in the wrong direction in regards to the peace process.

He also said that the U.S. supports dialogue between North Korea and South Korea and that such interaction would be in the best interests of everyone concerned.

In a notice sent to the South on Friday, the North’s agency in charge of the Gaeseong complex, the Central Guidance Bureau for Special Zone Development, said it will begin scrapping and revising existing regulations. It warned that South Korean companies operating in the complex must either accept the new terms unconditionally or leave the complex.