North Korea criticized President Park Geun-hye for her suggestion that it follow the path of Hungary in the European country's transition into a capitalist system following the end of the Cold War.
The North called Park's remarks nonsensical. "The South Korean leader slandered our dignified system. It is mere sophistry that came out of jealousy," said Pyongyang's Uriminzokkiri propaganda website.
The reaction came a day after President Park called on Pyongyang to seek a transition similar to that of Hungary, during summit talks with her Hungarian counterpart Janos Ader at Cheong Wa Dae.
"Pyongyang must realize that it cannot achieve economic growth as long as it shows no signs of giving up its nuclear program. I hope that the North can follow the successful Hungarian transition model," the president said.
In response, the North's propaganda website argued that North Korea has the "world's most superior system," and thus Pyongyang will continue to fight to the death to defend it.
The website also claimed that it is South Korea that needs to overhaul its system.
It went on to say Pyongyang would maintain parallel pursuit of nuclear and economic development to build up its national strength.
Also, the North blasted remarks of Unification Minister Hong Yong-pyo about the May 24 Sanctions during an interpellation session of the National Assembly, saying, "It shows the South's will to confront us."
Hong said Tuesday that the sanctions can only be lifted when Pyongyang takes responsible steps related to the 2010 sinking of the South Korean naval vessel Cheonan.
The so-called May 24 Sanctions ban all trading and commercial activities between the two sides, except at the Gaeseong Industrial Complex. Pyongyang has demanded the sanctions be lifted before there is any inter-Korean dialogue.