North Korea warns the US allowing South Korea to build more powerful missiles could lead to an "acute and instable situation" on the Korean Peninsula.
It is North Korea's first response to the May 21 summit between the leaders of the US and South Korea, during which the US ended decades-long restrictions that capped South Korea's missile development and allowed its ally to develop weapons with unlimited ranges.
According to the Korean Central News Agency, international affairs critic Kim Myong Chol said: "The termination step is a stark reminder of the US hostile policy toward (North Korea) and its shameful double-dealing.
"The US is mistaken, however. It is a serious blunder for it to pressurise (North Korea) by creating asymmetric imbalance in and around the Korean peninsula as this may lead to the acute and instable situation on the Korean peninsula now technically at war."
The US had previously barred South Korea from developing a missile with a range of longer than 800 kilometres out of concerns about a regional arms race.
The range is enough for a South Korean weapon to strike all of North Korea but is short of hitting other neighbours like China and Japan.
Some South Korean observers hailed the end of the restrictions as restoring military sovereignty, but others suspected the US intent was to boost its ally's military capability amid a rivalry with China.
The North Korean reaction comes as the Biden administration shapes a new approach on North Korea amid long-dormant talks over the North's nuclear program.
During their summit, Biden and South Korean President Moon Jae-in said the US review "takes a calibrated and practical approach that is open to and will explore diplomacy" with North Korea.