South Korean stocks continued to fall Tuesday on reports that North Korea was preparing for military action and had accused the South's Navy of trespassing.
South Korea on Monday froze funds for government exchanges with the North, a possible sign that Seoul is preparing for the results from an investigation into the March 26 Cheonan warship sinking that killed 46.
President Lee Myung-bak today called for a review of South Korea's defenses against the North, while using his strongest language yet to imply that the North sank the South's Cheonan warship on March 26.
North Korea has seized five hotels owned by South Korea in a jointly operated resort. The move comes as the South weighs its response to the Cheonan warship sinking.
South Korea today sent a naval destroyer in pursuit of an oil tanker captured Sunday by Somali pirates in the Gulf of Aden. The tanker holds some $170 million of crude oil.