In this file photograph dated March 27, 2017, the flag of the Democratic People's Republic of Korea is seen past the barbed wire fencing of the country's embassy in Kuala Lumpur. (MANAN VATSYAYANA / AFP)

PYONGYANG - The Democratic People's Republic of Korea (DPRK) has announced severance of diplomatic relations with Malaysia after Malaysia's top court ruled in favor of extraditing one of DPRK nationals to the United States to face money laundering charges, the official Korean Central News Agency reported Friday.

The DPRK businessman living in Malaysia was accused of supplying prohibited luxury items to Pyongyang in violation of UN sanctions

ALSO READ: DPRK leader urges local officials to improve work to fulfill role

The DPRK businessman living in Malaysia was accused of supplying prohibited luxury items from Singapore to Pyongyang in violation of United Nations sanctions. Malaysia's top court ruled that he can be extradited to the United States.

"With regard to the grave situation that has prevailed, the Ministry of Foreign Affairs of the DPRK hereby announces total severance of the diplomatic relations with Malaysia which committed super-large hostile act against the DPRK in subservience to the US pressure," the report said.

READ MORE: DPRK condemns US-ROK military drills

The report added that the businessman was engaged in "legitimate external trade activities" and warned that the Malaysian authority would "bear full responsibility for all the consequences to be incurred between the two countries."

Malaysia’s foreign ministry denounced the move, describing it as “unfriendly and unconstructive”.

In a statement, the ministry said Malaysia would close its embassy in Pyongyang in response and order all diplomatic staff at the DPRK embassy in Kuala Lumpur to leave the country within 48 hours.

With Reuters inputs