KCNA reported the weapon would bolster firepower along the country's southern border.
The test demonstrated the accuracy and superiority of the range-extended rockets, which use an autonomous precision guidance system, KCNA said.
The rockets are able to strike targets 100km away in a trajectory flight mode and 115km away in a combined glide mode, it added.
The development of such rockets assures North Korea of a significant change in the firepower readiness along the southern border, the news agency said, effectively referring to the one it shares with South Korea.
Pak Jong-chon, vice-chairman of the Central Military Commission, who oversaw the test, stressed the need to concentrate the deadliest and most destructive attack forces on the southern border, KCNA said.
South Korea's Defence Ministry did not immediately respond to a request for comment.
Pyongyang has been steadily upgrading its tactical and conventional arsenal that it intends to deploy near the border with South Korea.
Lim Eul-chul, a professor at Kyungnam University's Institute for Far Eastern Studies in Seoul, said the use of a precision guidance system suggested that North Korea could strike key facilities in the Seoul metropolitan area with a margin of error of just a few metres.
In June, North Korean leader Kim Jong-un oversaw tests of key weapons, including an upgraded rocket launcher and tactical missiles, that the country said would also be used to defend its southern border.
Separately, Foreign Minister Choe Son Hui said in a statement issued on Thursday that North Korea's nuclear weapons status was irreversible.
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