North Korea appears poised to display its nuclear weapons capability with an underground test, say experts, in a bid to keep military tensions high and force a return to talks.
South Korea announced that it is boosting funds related to initiatives with China. The move comes after North Korea's attack on an island last month.
The move is a response to the UN Security Council statement condemning North Korea's missile launch last week.
The move comes as South Korea and the US begin a large-scale joint military exercise.