Steve Bannon, U.S. President Donald Trump's chief strategist, was ousted after an interview in which he proposed the idea of pulling out American forces if Beijing forces Pyongyang to freeze its nuclear and missile programs.
The U.S. leader said the North will be met by "fire and fury".
"We remain prepared to use the full range of capabilities at our disposal against the growing threat from North Korea". It also features members of the Trump administration engulfed in flames.
Other senior USA government figures appear in the video, including vice president Mike Pence and Defense Secretary Jim Mattis.
The exercises are viewed by nuclear-armed Pyongyang as a provocative rehearsal for invasion, and it always meets them with threats of strong military counteraction.
Vincent Brooks, commander of U.S. Forces Korea, said the allies should continue the war games until they "have reason not to". Everything will depend on whether the United States acts sensibly or not.
Ju accused Washington of attempting to "shift the blame for the tense situation on the Korean Peninsula to DPRK". It was the fourth such accident involving a USA military ship in Asia this year - and has prompted questions about the operational capabilities of United States forces in the region.
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"That is a false equivalency that we can not accept and will not accept", he said.
The video was released before the US and South Korean armies embarked on their annual Ulchi Freedom Guardian exercises - a 10-day show of force including land, air and sea drills with thousands of troops.
But a visiting group of senior US military commanders, including Adm. Harry Harris, the commander of USA forces in the Pacific, said the drills are critical for the allies to maintain readiness against an aggressive North Korea.
The video isn't the latest provocation to come from the DPRK, the acronym used by the secretive state.
The ongoing UFG simulation exercise is the first South Korea-U.S. war game since two mobile launchers and other THAAD elements were transported in April to a former golf course in Seongju county, North Gyeongsang province.
"These complaints show our determination to stop North Korean sanctioned banks and their foreign financial facilitators from aiding North Korea in illegally accessing the United States financial system to obtain goods and services in the global market place", said U.S. Attorney Channing D. Phillips.
Last week, Prime Minister Malcolm Turnbull told 3AW that an ANZUS treaty would be invoked and Australia would send troops to the aid of the U.S. "if there is an attack" on the ally, prompting an angry response from North Korea.