(CNN) -- American Kenneth Bae, who is being held in North Korea, has been moved from a hospital to a labor camp, the State Department said on Friday.
Agency spokeswoman Jen Psaki said in a statement that the United States was "deeply concerned" by the development.
"We also remain gravely concerned about Mr. Bae's health" and again urged Pyongyang to grant him "special amnesty and immediate release on humanitarian grounds," she said.
Bae, of Lynwood, Washington, was arrested in November 2012 in Rason, along North Korea's northeastern coast.
The North Korean government accused Bae of planning to bring down the government through religious activities.
Last month, he told reporters that he had committed a "serious crime" in the secretive nation and that he had not experienced abusive treatment by the regime.
Any statement by Bae in captivity would be sanctioned by the North Korean government.