North Korea says missile ready for mass-production, U.S. questions progress

The scene of the intermediate-range ballistic missile

By Ju-min Park and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea said on Monday it successfully tested what it called an intermediate-range ballistic missile, which met all technical requirements and could now be mass-produced, although U.S. officials and experts questioned the extent of its progress.

The United States, which has condemned repeated North Korean missile launches, said Sunday’s launch of what North Korea dubbed the Pukguksong-2 was of a “medium-range” missile, and U.S.-based experts doubted the reliability of the relatively new solid-fuel type after so few tests.

U.S. officials, who spoke on condition of anonymity, said the test did not demonstrate a new capability, or one that could threaten the United States directly. But the test was North Korea’s second in a week and South Korea’s new liberal government said it dashed its hopes for peace.

U.S. officials have been far less sanguine about the test of a long-range KN-17, or Hwasong-12, missile just over a week ago, which U.S. officials believe survived re-entry to some degree.

North Korea said that launch tested the capability to carry a “large-size heavy nuclear warhead” and put the U.S. mainland within “sighting range.”

Western experts say that test did appear to have advanced North Korea’s aim of developing an intercontinental ballistic missile capable of reaching the U.S. mainland, even if it is still some way off from achieving that capability.

The U.N. Security Council is due to meet on Tuesday behind closed doors to discuss the latest test, which defies Security Council resolutions and sanctions. The meeting was called at the request of the United States, Japan and South Korea.

Washington has been trying to persuade China to agree to new sanctions on North Korea, which has conducted dozens of missile firings and tested two nuclear bombs since the start of last year.

U.S. President Donald Trump has warned that a “major, major conflict” with North Korea is possible over its weapons programs, although U.S. officials say tougher sanctions, not military force, are the preferred option.

North Korea’s state news agency, KCNA, said the latest missile test was supervised by leader Kim Jong Un and verified the reliability of Pukguksong-2’s solid-fuel engine, stage separation and late-stage guidance for a nuclear warhead. It said data was recorded by a device mounted on the warhead.

‘PRIDE’

“Saying with pride that the missile’s rate of hits is very accurate and Pukguksong-2 is a successful strategic weapon, he (Kim) approved the deployment of this weapon system for action,” KCNA said.

“Now that its tactical and technical data met the requirements of the Party, this type of missile should be rapidly mass-produced in a serial way … he said.”

KCNA said Kim was able to view the Earth from a camera mounted on the missile. “Supreme leader Kim Jong Un said it feels grand to look at the Earth from the rocket we launched and the entire world looks so beautiful,” KCNA said.

South Korea’s military said the missile flew about 500 km (310 miles), reaching an altitude of 560 km (350 miles).

The South’s military said the test would have provided more “meaningful data” for North Korea’s missile program, but further analysis was needed to determine whether Pyongyang had mastered the technology needed to stop the warhead burning up on re-entering the Earth’s atmosphere.

U.S.-based experts said it would have a maximum range of about 1,500 km (930 miles) and questioned North Korea’s assertion that the reliability of the solid-fuel missile had been proven, given limited testing.

“Entering mass production this early in the development phase is risky, but perhaps a risk North Korea feels comfortable managing,” said Michael Elleman of the International Institute for Strategic Studies.

Jeffrey Lewis, of the California-based Middlebury Institute of International Studies, said North Korea would probably continue to test the missile after deployment, fixing flaws as they emerged.

The use of solid fuel presents advantages for weapons because it is more stable and can be transported easily allowing for a launch at very short notice from mobile launchers.

Developing longer-range solid fuel missiles was a highly complicated and would “take time, lots of it,” Elleman said, but North Korea’s solid fuel missiles pose a threat to South Korea and Japan and the tens of thousands of U.S. troops based in both countries.

On Sunday U.S. Secretary of State Rex Tillerson termed North Korea’s missile testing “disappointing, disturbing” and said economic and diplomatic pressure would continue.

Japan’s chief Cabinet secretary, Yoshihide Suga, said on Monday it was important to cut North Korea’s foreign currency earnings and to block shipments and technology transfers that aid North Korea’s nuclear missile development.

China repeated its call for all parties to exercise restraint and not let tension mount further.

On Monday, South Korea’s Unification Ministry spokesman Lee Duk-haeng said while Seoul would respond firmly to any North Korean “provocations”, “it would not be desirable to have ties between the South and the North severed.”

(Additional reporting by Kaori Kaneko in Tokyo, Ben Blanchard in Beijing and David Brunnstrom and Matt Spetalnick in Washington; Editing by Nick Macfie and Peter Cooney)

U.N.’s North Korea sanctions monitors hit by ‘sustained’ cyber attack

A man types on a computer keyboard in front of the displayed cyber code in this illustration picture

By Michelle Nichols

UNITED NATIONS (Reuters) – United Nations experts investigating violations of sanctions on North Korea have suffered a “sustained” cyber attack by unknown hackers with “very detailed insight” into their work, according to an email warning seen by Reuters on Monday.

The hackers eventually breached the computer of one of the experts on May 8, the chair of the panel of experts wrote in an email to U.N. officials and the U.N. Security Council’s North Korea sanctions committee, known as the 1718 committee.

“The zip file was sent with a highly personalized message which shows the hackers have very detailed insight into the panel’s current investigations structure and working methods,” read the email, which was sent on May 8.

“As a number of 1718 committee members were targeted in a similar fashion in 2016, I am writing to you all to alert you to this heightened risk,” the chair of the panel of experts wrote, describing the attack as part of a “sustained cyber campaign.”

A spokesman for the Italian mission to the United Nations, which chairs the 1718 sanctions committee, said on Friday that a member of the panel of experts had been hacked.

No further details who might be responsible were immediately available.

North Korea’s deputy United Nations envoy said on Friday “it is ridiculous” to link Pyongyang with the hacking of the U.N. panel of experts or the WannaCry “ransomware” cyber attack that started to sweep around the globe more than a week ago.

Cyber security researchers have found technical evidence they said could link North Korea with the WannaCry attack.

Reuters reported on Sunday that North Korea’s main spy agency has a special cell called Unit 180 that is likely to have launched some of its most daring and successful cyber attacks, according to defectors, officials and internet security experts.

The U.N. Security Council first imposed sanctions on North Korea in 2006 and has strengthened the measures in response to the country’s five nuclear bomb tests and two long-range rocket launches. Pyongyang is threatening a sixth nuclear test.

A second email by the U.N. sanctions committee secretary to the 15 Security Council members on May 10 said the U.N. Office of Information and Communications Technology was “conducting an analysis of the affected hard drive.”

“Increased vigilance relating to 1718 Committee-related correspondence is therefore advised until data analysis and related investigations are completed,” the email read.

(Reporting by Michelle Nichols; Editing by Alistair Bell)

North Korea says U.S. has to roll back ‘hostile policy’ before talks

FILE PHOTO: A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

By Michelle Nichols

UNITED NATIONS (Reuters) – North Korea’s deputy U.N. envoy said on Friday the United States needed to roll back its “hostile policy” toward the country before there could be talks as Washington raised concern that Pyongyang could be producing a chemical used in a nerve agent.

“As everybody knows, the Americans have gestured (toward) dialogue,” North Korea’s deputy U.N. ambassador, Kim In Ryong, told reporters on Friday. “But what is important is not words, but actions.”

“The rolling back of the hostile policy towards DPRK is the prerequisite for solving all the problems in the Korean Peninsula,” he said. “Therefore, the urgent issue to be settled on Korean Peninsula is to put a definite end to the U.S. hostile policy towards DPRK, the root cause of all problems.”

North Korea, also known as the Democratic People’s Republic of Korea (DPRK), has vowed to develop a missile mounted with a nuclear warhead that can strike the mainland United States, saying the program is necessary to counter U.S. aggression.

U.S. President Donald Trump warned in an interview with Reuters in late April that a “major, major conflict” with North Korea was possible, but said he would prefer a diplomatic outcome to the dispute over its nuclear and missile programs.

Trump later said he would be “honored” to meet the North’s leader, Kim Jong Un, under the right conditions. A U.S. State Department spokesman said the country would have to “cease all its illegal activities and aggressive behavior in the region.”

The U.N. Security Council first imposed sanctions on North Korea in 2006 and has strengthened the measures in response to the country’s five nuclear tests and two long-range rocket launches. Pyongyang is threatening a sixth nuclear test.

U.S. Ambassador to the United Nations Nikki Haley raised concern on Friday about an application by North Korea to patent a process to produce sodium cyanide, which can be used to make the nerve agent Tabun and is also used in the extraction of gold.

“The thought of placing cyanide in the hands of the North Koreans, considering their record on human rights, political prisoners, and assassinations is not only dangerous but defies common sense,” Haley said in a statement.

North Korea submitted the patent application to a U.N. agency, the World Intellectual Property Organization (WIPO), for processing. The agency does not grant patents.

U.N. sanctions monitors said they are investigating the case for any violations. Under U.N. sanctions, states are banned from supplying North Korea with sodium cyanide and Pyongyang has to abandon all chemical and biological weapons and programs.

WIPO said in a statement that it has strict procedures to ensure full compliance with U.N. sanctions regimes. It noted that “patent applications are not covered by the provisions of U.N. Security Council Resolutions.”

Haley said: “We urge all U.N. agencies to be transparent and apply the utmost scrutiny when dealing with these types of requests from North Korea and other rogue nations.”

(Reporting by Michelle Nichols; Editing by Jonathan Oatis and Leslie Adler)

North Korea says linking cyber attacks to Pyongyang is ‘ridiculous’

A screenshot shows a WannaCry ransomware demand, provided by cyber security firm Symantec, in Mountain View, California, U.S. May 15, 2017. Courtesy of Symantec/Handout via REUTERS

By Michelle Nichols

UNITED NATIONS (Reuters) – North Korea’s deputy United Nations envoy said on Friday “it is ridiculous” to link Pyongyang with the WannaCry “ransomware” cyber attack that started to sweep around the globe a week ago or the hacking of a U.N. expert monitoring sanctions violations.

WannaCry has infected more than 300,000 computers in 150 nations. It threatens to lock out victims who have not paid a ransom within one week of infection. French researchers said on Friday they had found a last-chance way to save encrypted files.

“Relating to the cyber attack, linking to the DPRK, it is ridiculous,” North Korea’s Deputy U.N. Ambassador Kim In Ryong told a news conference when asked if Pyongyang was involved in the global WannaCry attack or the U.N. hack.

North Korea is also known as the Democratic People’s Republic of Korea (DPRK).

“Whenever something strange happens, it is the stereotype way of the United States and the hostile forces that kick off noisy anti-DPRK campaign deliberately linking with DPRK,” Kim said.

Symantec <SYMC.O> and Kaspersky Lab said on Monday that some code in an earlier version of the WannaCry software had also appeared in programs used by the Lazarus Group, which researchers from many companies have identified as a North Korea-run hacking operation.

A spokesman for the Italian mission to the United Nations, which chairs the U.N. Security Council North Korea sanctions committee, said on Friday that a member of the U.N. panel of experts who monitor sanctions violations had been hacked.

No further details on the extent of the hack or who might be responsible were immediately available.

The U.N. Security Council first imposed sanctions on North Korea in 2006 and has strengthened the measures in response to the country’s five nuclear tests and two long-range rocket launches. Pyongyang is threatening a sixth nuclear test.

(Reporting by Michelle Nichols; Editing by Jonathan Oatis and Grant McCool)

U.S.: Military solution to North Korea would be ‘tragic on an unbelievable scale’

U.S. Defense Secretary James Mattis gestures during a press briefing on the campaign to defeat ISIS at the Pentagon in Washington, U.S., May 19, 2017. REUTERS/Yuri Gripas

By Phil Stewart and David Brunnstrom

WASHINGTON (Reuters) – U.S. Defense Secretary Jim Mattis said on Friday that any military solution to the North Korea crisis would be “tragic on an unbelievable scale” and Washington was working internationally to find a diplomatic solution.

North Korea has defied all calls to rein in its nuclear and missile programs, even from China, its lone major ally, calling them legitimate self-defense.

It has been working to develop a nuclear-tipped missile capable of striking the U.S. mainland, and experts say its test on Sunday of a new missile was another important step toward that aim.

“We are going to continue to work the issue,” Mattis told a Pentagon news conference.

“If this goes to a military solution, it’s going to be tragic on an unbelievable scale. So our effort is to work with the U.N., work with China, work with Japan, work with South Korea to try to find a way out of this situation.”

The remarks were one of the clearest indicators yet that President Donald Trump’s administration will seek to exhaust alternatives before turning to military action to force Pyongyang’s hand.

The United States, which has 28,500 troops in South Korea to guard against the North Korean threat, has called on China to do more to rein in its neighbor.

Mattis appeared to defend China’s most recent efforts, even as he acknowledged Pyongyang’s march forward.

“They (North Korea) clearly aren’t listening but there appears to be some impact by the Chinese working here. It’s not obviously perfect when they launch a missile,” Mattis said, when asked about Sunday’s launch.

RE-ENTRY CAPABILITY?

South Korea has said the North’s missile program was progressing faster than expected, with Sunday’s test considered successful in flight.

North Korea said the launch tested the capability to carry a “large-size heavy nuclear warhead,” and its ambassador in Beijing has said that Pyongyang would continue such test launches “any time, any place.”

Mattis acknowledged that Pyongyang had likely learned a great deal from the latest test of what U.S. officials say was a KN-17 missile, which was believed to have survived re-entry to some degree.

“They went to a very high apogee and when it came down obviously from that altitude they probably learned a lot from it. But I’m not willing to characterize it beyond that right now,” Mattis said.

David Wright, co-director and senior scientist at the Global Security Program at the Union of Concerned Scientists, the big question was whether North Korea could build a re-entry vehicle for a long-range missile that wouldn’t burn up during re-entry and could keep a warhead from becoming too hot in the process.

“This test in principle gave them a lot of information about this, assuming they had sensors that could send information back during reentry so they could monitor the heat, or they could recover the reentry vehicle and examine it,” he said.

(Additional reporting by Matt Spetalnick; Editing by Jonathan Oatis and Cynthia Osterman)

New ferry links North Korea and Russia despite U.S. calls for isolation

The North Korean ferry, the Mangyongbong, is docked in the port of the far eastern city of Vladivostok, Russia, May 18, 2017. REUTERS/Yuri Maltsev

By Valeria Fedorenko

VLADIVOSTOK, Russia (Reuters) – A new ferry between isolated North Korea and Russia docked for the first time at the Pacific port of Vladivostok on Thursday, in spite of U.S. calls for countries to curtail relations with Pyongyang over its nuclear and missile programs.

The launch of the weekly service linking Vladivostok and the North Korean port of Rajin also came despite North Korea’s test-firing of a new type of ballistic missile on Sunday that landed in the sea near Russia.

The ferry’s Russian operators say it is purely a commercial venture, but the service’s launch coincides with what some experts say is a drive by North Korea to build ties with Moscow in case its closest ally China turns its back.

The service is pitched at Chinese tourists wanting to travel by sea to the Pacific port of Vladivostok, according to the operators.

China has no ports on the Sea of Japan, so traveling to North Korea and on to Vladivostok is the quickest way of reaching Vladivostok by sea.

“It’s our business, of our company, without any state subsidies, involvement and help,” Mikhail Khmel, the deputy director of Investstroytrest, the Russia firm operating the ferry, told reporters.

The new ferry link comes in spite of recent calls by U.S. Secretary of State Rex Tillerson for countries to fully implement U.N. sanctions and review their ties with North Korea to pressure it to give up its weapons programs.

“We call on all nations to fully implement U.N. Security Council Resolutions, and sever or downgrade diplomatic and commercial relations with North Korea,” a spokeswoman for the U.S. State Department, Katina Adams, said when asked about the new ferry service.

Adams noted Russia’s “obligation” under U.N. Security Council resolutions, “to inspect all cargo, including personal luggage, of any individual traveling to or from” North Korea.

Journalists were unable to see passengers disembarking from the North Korean-flagged vessel Mangyongbong at Vladivostok because Russian officials kept them away from the quayside, citing unspecified security reasons.

But Reuters television was able to speak to three passengers, who said they were representatives of Chinese tourism agencies.

One of the passengers showed a photograph on her smartphone she said had been taken on board. It showed a plaque with an inscription in Korean which, she said, bore the name of North Korea’s long-dead founder Kim Il Sung.

The United States has been discussing possible new U.N. sanctions on North Korea with China, which disapproves of North Korea’s development of nuclear weapons and ballistic missiles to deliver them, but remains its main trading partner.

Washington is looking to toughen U.N. sanctions to cut off Pyongyang’s sources of funding and to block smuggling of materials needed for its weapons programs.

Russia, especially the port of Vladivostok, is home to one of the largest overseas communities of North Koreans, who send home much-needed hard currency.

To date, there are no signs of a sustainable increase in trade between Russia and North Korea, but Russia has taken a more benign stance toward Pyongyang that other major powers.

Speaking in Beijing this week, Russian President Vladimir Putin said Moscow was against North Korea’s nuclear program, but that the world should talk to Pyongyang instead of threatening it.

Asked about the ferry, Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday she “didn’t see a connection” between the new service and political issues.

(Reporting by Valeria Fedorenko; additional reporting by David Brunnstrom; Writing by Maria Tsvetkova; Editing by Phil Berlowitz)

Trump willing to try engagement with North Korea, on conditions: Seoul

U.S. President Donald Trump gestures as he walks on the South Lawn of the White House upon his return to Washington, U.S., May 17, 2017. REUTERS/Yuri Gripas

By Christine Kim

SEOUL (Reuters) – U.S. President Donald Trump told South Korea’s presidential envoy that Washington was willing to try to resolve the North Korean nuclear crisis through engagement, but under the right conditions, South Korea’s foreign ministry said on Thursday.

Trump has said “a major, major conflict” with North Korea is possible and all options are on the table but that he wanted to resolve the crisis diplomatically, possibly through the extended use of economic sanctions.

South Korean President Moon Jae-in, who took office last week, has campaigned on a more moderate approach toward the North but he has said it must change its attitude of insisting on arms development before dialogue can be possible.

Moon’s envoy to Washington, South Korean media mogul Hong Seok-hyun, said Trump spoke of being willing to use engagement to ensure peace, Hong said in comments carried by television.

“The fact that Trump said he will not have talks for the sake of talks reiterated our joint stance that we are open to dialogue but the right situation must be formed,” Foreign Ministry spokesman Cho June-hyuck told a regular briefing.

South Korea and the United States agreed during a visit to Seoul by Trump’s national security advisers this week to formulate a “bold and pragmatic” joint approach, Cho added.

The North has vowed to develop a missile mounted with a nuclear warhead that can strike the mainland United States, saying the program is necessary to counter U.S. aggression.

The United States, which has 28,500 troops in South Korea to guard against the North Korean threat, has called on China to do more to rein in its neighbor.

China for its part has been infuriated by the U.S. deployment of an advanced Terminal High Altitude Area Defense (THAAD) anti-missile system in South Korea, saying it was a threat to its security and would do nothing to ease tension with Pyongyang.

South Korea has complained that some of is companies doing business in China have faced discrimination in retaliation for the system’s deployment.

North Korea conducted its latest ballistic missile test on Sunday in defiance of U.N. Security Council resolutions, saying it was a test of its capability to carry a “large-size heavy nuclear warhead”.

But a senior North Korean diplomat has said Pyongyang is also open to having talks with Washington under the right conditions.

Moon’s envoy to China, former prime minister Lee Hae-chan, arrived there on Thursday with a letter from Moon to Chinese President Xi Jinping.

Before leaving, Lee said a summit between Xi and Moon could happen as soon as July, on the sidelines of a Group of 20 meeting in Germany. A separate summit could also be held the following month, Lee said.

Speaking to Lee, Chinese Foreign Minister Wang Yi said there had been some “undeserved setbacks” in relations this year, in apparent reference to THAAD.

“We hope the new government will correct the problems that we have encountered and take effective measures and positions as soon as possible to remove the obstacles that have been placed on the road to good relations between our two countries,” Wang said in comments in front of reporters.

“This is the desire of our two peoples but also our governments,” Wang added. “We believe South Korea will bring clear measures to improve relations.”

China’s Foreign Ministry, in a later statement on its website, said Wang “fully explained” China’s position on THAAD and asked South Korea to handle China’s reasonable concerns appropriately.

“China is willing to make efforts with all sides, including South Korea, to take even more practical efforts and uphold resolving the nuclear issue on the peninsula via dialogue,” the ministry cited Wang as saying.

Moon has sent envoys to the United States, China, Japan and the European Union this week in what the government calls “pre-emptive diplomacy”. His envoy for Russia will leave next week.

(Additional reporting by Ben Blanchard in BEIJING; Editing by Nick Macfie, Robert Birsel)

Hackers mint crypto-currency with technique in global ‘ransomware’ attack

A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. REUTERS/Kacper Pempel/Illustration

By Joseph Menn

SAN FRANCISCO (Reuters) – A computer virus that exploits the same vulnerability as the global “ransomware” attack has latched on to more than 200,000 computers and begun manufacturing digital currency, experts said Tuesday.

The development adds to the dangers exposed by the WannaCry ransomware and provides another piece of evidence that a North Korea-linked hacking group may be behind the attacks.

WannaCry, developed in part with hacking techniques that were either stolen or leaked from the U.S. National Security Agency, has infected more than 300,000 computers since Friday, locking up their data and demanding a ransom payment to release it.

Researchers at security firm Proofpoint said the related attack, which installs a currency “miner” that generates digital cash, began infecting machines in late April or early May but had not been previously discovered because it allows computers to operate while creating the digital cash in the background.

Proofpoint executive Ryan Kalember said the authors may have earned more than $1 million, far more than has been generated by the WannaCry attack.

Like WannaCry, the program attacks via a flaw in Microsoft Corp’s <MSFT.O> Windows software. That hole has been patched in newer versions of Windows, though not all companies and individuals have installed the patches.

Digital currencies based on a technology known as blockchain operate by enabling the creation of new currency in exchange for solving complex math problems. Digital “miners” run specially configured computers to solve the problems and generate currency, whose value ultimate fluctuates according to market demand.

Bitcoin is by far the largest such currency, but the new mining program is not aimed at Bitcoin. Rather it targeted a newer digital currency, called Monero, that experts say has been pursued recently by North Korean-linked hackers.

North Korea has attracted attention in the WannaCry case for a number of reasons, including the fact that early versions of the WannaCry code used some programming lines that had previously been spotted in attacks by Lazarus Group, a hacking group associated with North Korea.

Security researchers and U.S. intelligence officials have cautioned that such evidence is not conclusive, and the investigation is in its early stages.

In early April, security firm Kaspersky Lab said that a wing of Lazarus devoted to financial gain had installed software to mine Monero on a server in Europe.

A new campaign to mine the same currency, using the same Windows weakness as WannaCry, could be coincidence, or it could suggest that North Korea was responsible for both the ransomware and the currency mining.

Kalember said he believes the similarities in the European case, WannaCry and the miner were “more than coincidence.”

“It’s a really strong overlap,” he said. “It’s not like you see Monero miners all over the world.”

The North Korean mission to the United Nations could not be reached for comment, while the FBI declined to comment.

(Fixes spelling of digital currency in paragraphs 11 and 14 to Monero not Moreno.)

(Reporting by Joseph Menn; Editing by Jonathan Weber and Cynthia Osterman)

South Korea’s Moon says ‘high possibility’ of conflict with North as missile crisis builds

FILE PHOTO: North Korea's leader Kim Jong Un watches a military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS/File Photo

By Christine Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Wednesday there was a “high possibility” of conflict with North Korea, which is pressing ahead with nuclear and missile programs it says it needs to counter U.S. aggression.

The comments came hours after the South, which hosts 28,500 U.S. troops, said it wanted to reopen a channel of dialogue with North Korea as Moon seeks a two-track policy, involving sanctions and dialogue, to try to rein in its neighbor.

North Korea has made no secret of the fact that it is working to develop a nuclear-tipped missile capable of striking the U.S. mainland and has ignored calls to halt its nuclear and missile programs, even from China, its lone major ally.

It conducted its latest ballistic missile launch, in defiance of UN Security Council resolutions, on Sunday which it said was a test of its capability to carry a “large-size heavy nuclear warhead”, drawing Security Council condemnation.

“The reality is that there is a high possibility of a military conflict at the NLL (Northern Limit Line) and military demarcation line,” Moon was quoted as saying by the presidential Blue House.

He also said the North’s nuclear and missile capabilities seem to have advanced rapidly recently but that the South was ready and capable of striking back should the North attack.

Moon won an election last week campaigning on a more moderate approach towards the North and said after taking office that he wants to pursue dialogue as well as pressure.

But he has said the North must change its attitude of insisting on pressing ahead with its arms development before dialogue is possible.

South Korean Unification Ministry spokesman Lee Duk-haeng told reporters the government’s most basic stance is that communication lines between South and North Korea should reopen.

“The Unification Ministry has considered options on this internally but nothing has been decided yet,” said Lee.

NO WORD YET ON THAAD

Communications were severed by the North last year, Lee said, in the wake of new sanctions following North Korea’s fifth nuclear test and Pyongyang’s decision to shut down a joint industrial zone operated inside the North.

North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North defends its weapons programs as necessary to counter U.S. hostility and regularly threatens to destroy the United States.

Moon’s envoy to the United States, South Korean media mogul Hong Seok-hyun, left for Washington on Wednesday. Hong said South Korea had not yet received official word from the United States on whether Seoul should pay for an anti-missile U.S. radar system that has been deployed outside Seoul.

U.S. President Donald Trump has said he wants South Korea to pay for the Terminal High Altitude Area Defense (THAAD) anti-missile system which detected Sunday’s test launch.

China has strongly opposed THAAD, saying it can spy into its territory, and South Korean companies have been hit in China by a nationalist backlash over the deployment.

The United States said on Tuesday it believed it could persuade China to impose new U.N. sanctions on North Korea and warned that Washington would also target and “call out” countries supporting Pyongyang.

Speaking to reporters ahead of a closed-door U.N. Security Council meeting, U.S. Ambassador to the United Nations Nikki Haley also made clear that Washington would only talk to North Korea once it halted its nuclear program.

As about Haley’s comments, Chinese Foreign Ministry spokeswoman Hua Chunying said China would work hard at reducing tensions on the Korean peninsula and finding a peaceful resolution.

Trump has called for an immediate halt to North Korea’s missile and nuclear tests and U.S. Disarmament Ambassador Robert Wood said on Tuesday that China’s leverage was key and Beijing could do more.

Trump warned this month that a “major, major conflict” with North Korea was possible, and in a show of force, sent the Carl Vinson aircraft carrier strike group to Korean waters to conduct drills with South Korea and Japan.

The U.S. troop presence in South Korea, a legacy of the Korean War, is primarily to guard against the North Korean threat.

(Additional reporting by Michelle Nichols at the UNITED NATIONS and Ben Blanchard in BEIJING; Editing by Nick Macfie)