"The weapon system's efficiency to detect and track targets has remarkably improved and its hitting accuracy has also increased", KCNA reported, "Some defects in the weapons system, discovered previous year, were perfectly overcome".
State media reported the new weapon system is created to "detect and strike different targets flying from any location".
North Korean leader Kim Jong-un reacts with Ri Pyong-chol (left).
They also agreed to strengthen the U.S. -Japan alliance to further each country's capability to deter and defend against threats from North Korea.
The result, on Obama's watch, was that North Korea carried out four of its five nuclear tests to date, and accelerated its missile program to include over the past three years - as The Wall Street Journal reported recently - the launches of "more major missiles than in the three previous decades combined".
North Korean state media said the weapons system would stop hostile nations "boasting of air supremacy and weapon almighty".
North Korea's leader, Kim Jong Un, has vowed to field a nuclear-armed missile capable of reaching American territory. G7 urged Pyongyang to comply in full with all relevant UN Security Council resolutions and to abandon all its nuclear and ballistic missile tests.
Images and video footage released by KCNA and Rodong Sinmun show the KN-06's interceptor successfully ejecting from its canister, properly igniting its engines, and boosting into the air.
The target will be a custom-made missile meant to simulate an ICBM, meaning it will fly faster than missiles used in previous intercept tests, according to Christopher Johnson, spokesman for the Missile Defense Agency.
A statement by the South's Joint Chiefs of Staff said the launch came from around the eastern North Korean coastal town of Wonsan, but the agency didn't say what type of projectile was sacked or if it was successful.
"We conduct increasingly complex test scenarios as the program matures and advances", Johnson said Friday.