Japan rejects North Korea's accusation that the sinking of an unidentified ship after a shootout with Japanese patrol boats was "an act of piracy," Chief Cabinet Secretary Yasuo Fukuda said Thursday.

"I believe the expressions used were 'brutal piracy' and 'terrorism of a modern brand.' I wonder if these are phrases that are suitable internationally," the government's top spokesman told a news conference.

"We are taking appropriate actions based on international laws and other related laws. Such criticism expressed in a poor and vulgar manner is totally inappropriate," Fukuda said.