Vice-Foreign Minister Han Song-ryol told the BBC that North Korea believed its nuclear weapons "protect" it from the threat of U.S. military action.
The long-scheduled tests in the Pacific are part of the US military's overall ballistic missile defense program to defend against North Korean or Iranian threats - but are, for now at least, aimed at ensuring the US can defend against a threat from North Korea, US defense officials said.
The vice president earlier visited a military installation near the DMZ, Camp Bonifas, for a briefing with military leaders.
Pence's advisers told reporters that he hopes to win better US access to Japanese markets and to attract more Japanese investment in the U.S. -South Korean military exercises being staged now are the largest-ever "aggressive war drill".
On both the North Korean and United States sides of the conflict, all talk of military action can likely be dismissed as bluster.
Japanese Prime Minister Shinzo Abe on Monday told a parliamentary session that diplomatic efforts were "important to maintain peace", but "dialogue for the sake of having dialogue is meaningless".
In response, Abe called for the need to pressure North Korea to engage in dialogue.
Pence's visit, full of Cold War symbolism, came amid increasing tensions and heated rhetoric on the Korean Peninsula.
The precondition for solving all the problems today on the Korean Peninsula is for Washington to roll back its hostile North Korea policy, said the deputy ambassador.
It comes as North Korea wiped out the USA with a nuke bomb in a chilling World War 3 simulation video.
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It was in retaliation for what the United States said was a chemical weapons attack by Mr Assad's forces on Syrian civilians. The senator said it's imperative now to have a clear, carefully devised strategy for Syrian action.
Pressure from North Korea's main ally China, which has urged both the US and the North against escalating tensions, also seems to be working.
President Trump's number two is also scheduled to hold talks with Japanese leaders on the subject of increase bilateral trade agreements. He says the Trump administration's plans to simplify the USA tax code and cut the corporate tax rate will "benefit every business represented here today".
Pence and Aso said they believed the dialogue could yield opportunities to create new jobs on both sides and to fortify the economic aspects of the alliance.
The US has military forces in South Korea on a permanent basis, and routinely threatens the North with military action.
He did not comment on what might have caused the missile to fail but an official said the missile was a Scud variant that the U.S. calls a KN-17.
The high-profile failure came as the North tried to showcase its nuclear and missile capabilities around the birth anniversary of the North's late founder and as a USA aircraft carrier neared the Korean Peninsula.
Previous presidents have repeatedly left all options on the table while trying to enlist China's help to pressure North Korea to pursue diplomatic solutions.
Tunnels from North Korea into South Korea have been found before, though none have been uncovered since 1990.
According to the report, the military might attempt a missile shoot-down with an Aegis missile-defense system aboard a United States navy destroyer. "Everybody has been outplayed, they've all been outplayed by this gentleman, and we'll see what happens".
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