KCNA also said two intelligence services "ideologically corrupted" and bribed a North Korean surnamed Kim and turned him into "a terrorist full of repugnance and revenge against the supreme leadership of the DPRK". Pyongyang, which says it needs nuclear weapons to defend itself against invasion, has carried out a series of missile launches and threatened a sixth atomic test, while the administration of new US President Donald Trump has said that military action was an "option on the table" - raising fears of a spiralling conflict.
In a statement carried on state media, North Korea's Ministry of State Security said it will "ferret out and mercilessly destroy" the "terrorists" in the CIA and South Korean intelligence agency responsible for targeting its supreme leadership.
"Upon his repatriation, the [intelligence agencies] conspired with [the suspect] to carry out a bomb attack on our supreme leader, either during an event at the Kumsusan Palace of the Sun, or at a military parade", the statement read.
The North Korean state media released little information about the alleged assassin, only that he was "human scum" who received about $750,000 from the USA and was working with a contact in South Korean intelligence.
It is likely that any economic pressure will negatively affect China, which is North Korea's closest trading partner.
"By relentlessly bringing in a number of strategic nuclear assets to the Korean peninsula, the U.S.is gravely threatening the peace and safety and driving the situation to the brink of a nuclear war", North Korean officials said in a statement in April, according to KCNA.
What was the alleged plot?
US Secretary of State Rex Tillerson said on Wednesday (local time) that Washington was working on more sanctions against North Korea if it takes steps that merit a new response. In North Korean propaganda, South Korea remains a "puppet" of the United States.
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However, Trump said he feels "confident" the bill will pass through the Senate and said it "will get even better". The House bill would shift power to states to set important health insurance rules.
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Amid all this tension, Pyongyang has now accused the Central Intelligence Agency of using "biochemical substances" to assassinate its leader Kim Jong-un.
The U.S. Embassy in Seoul and South Korea's National Intelligence Service were not immediately available for comment. Anyone who uses slave labor that the North exports would be subject to sanctions.
The US has sent a warship to the region and installed a controversial anti-missile defence system in South Korea.
The measure is aimed at cutting off North Korea's access to the cash and energy it needs to follow through its plans to build a nuclear missile capable of striking the US.
The airport attack, blamed by the United States and Seoul on North Korean agents, has been cited by Washington in its efforts to persuade countries to minimize ties with North Korea.
"Only the Central Intelligence Agency can produce such substance", it said, adding that South Korea had borne the funding.
The now-retired former South Korean ambassador vividly recalls what the then North Korean ambassador told him: "We've never really trusted China".