WASHINGTON, May 15 (Xinhua) -- The United States slammed the declaration by the Democratic People's Republic of Korea (DPRK) on Friday to tear up all contracts with South Korea on a joint industrial zone as "a step in the wrong direction."

    "Such a precipitous action by North Korea would be unhelpful and a step in the wrong direction," said State Department spokesman Ian Kelly, adding that the United States supports North-South dialogue "which is in the interests of all concerned."

    The DPRK declared Friday the contracts of a joint factory zone with South Korea null and void, accusing South Korea of delaying contact over new agreements and raising the issue of a detained South Korean worker as precondition for contact.

    A South Korean employee at the Kaesong industrial zone was arrested on March 30 for allegedly criticizing the DPRK's regime and trying to persuade a local female worker to defect.

    The industrial zone, located in the DPRK near the border with South Korea, has been viewed as a symbol of reconciliation between South Korea and the DPRK. Some 38,000 DPRK people work at 101 South Korean companies in the industrial zone that produce garments, kitchenware, watches and other items.