By Kim Young-jin

North Korea has detained two Japanese men for allegedly smuggling drugs into the communist state, a report said Wednesday.

The men, employees of a machine maintenance firm, were arrested along with a colleague in Rason, a special economic zone along the Russian border, Japan’s Asahi Shimbun said, citing anonymous sources. The third man was later allowed to return to Japan. 

According to the report, the three men were arrested on charges of hiding powdered drugs in cans manufactured by the firm. 

The North has demanded a large bail for the detainees, Asahi said. Tokyo is reportedly monitoring the situation and planning diplomatic steps.

Seoul’s Ministry of Unification, which monitors North Korean affairs, said it had no information on the case. 

The development comes days after Pyongyang confirmed it would indict a Korean-American for an unspecified crime. 

Reports said the American detainee, Jun Young-su, is a businessman involved in unauthorized religious activities in the North, citing unnamed sources. 

In 2003, North Korea arrested a Japanese man for allegedly smuggling drugs before finally allowing him to be repatriated on humanitarian grounds six years later.

The isolated North has a history of detaining foreigners to use as diplomatic bargaining chips. Last year, former U.S. Presidents Bill Clinton and Jimmy Carter flew to Pyongyang to secure the release of two journalists and an English teacher, respectively.