SEOUL - NORTH Korea held an expanded cabinet meeting on Monday on ways to boost production, state media reported, the latest sign of official concern about the hardline communist state's crumbling economy.

Cabinet members, local government officials and managers of major factories took part in the meeting on efforts to implement leader Kim Jong Il's policies, the official Korean Central News Agency reported.

The meeting affirmed the need to stick to socialist principles in economic projects and promote 'the superiority of the socialist economy', it said.

It reviewed economic planning and the state budget for the third quarter and plans for the fourth quarter.

The news agency said talks focused on 'intensifying efforts to boost production in important economic sectors, expanding economic relations abroad and firmly adhering to socialist economic development'.

The report made no mention of whether the reportedly ailing Kim attended the meeting.

It was the second official call this month to boost the command economy.

'The people are urged to stage an all-out struggle on the economic front and achieve the great goal of building an economic power demanded by the party,' Mr Rodong Sinmun, newspaper of the ruling communist daily, said on the party's October 10 anniversary.

'With confidence and belief in the future of a strong and prosperous country, we must launch an aggressive struggle and create... leaps in all fields of socialist construction.' -- AFP