Tag Archives: South Korea

U.S. bombers drill over Korean peninsula after latest North Korea launch

U.S. bombers drill over Korean peninsula after latest North Korea launch

By Jack Kim and Kaori Kaneko

SEOUL/TOKYO (Reuters) – South Korean and Japanese jets joined exercises with two U.S. nuclear-capable bombers above and near the Korean peninsula on Thursday, two days after North Korea fired a missile over Japan, sharply raising tension.

The drills, involving two supersonic U.S. B-1B bombers, four U.S. stealth F-35B jets as well as South Korean and Japanese fighter jets, came at the end of annual joint U.S.-South Korea military exercises focused mainly on computer simulations.

“North Korea’s actions are a threat to our allies, partners and homeland, and their destabilizing actions will be met accordingly,” said General Terrence J. O’Shaughnessy, Pacific Air Forces commander, who made an unscheduled visit to Japan.

“This complex mission clearly demonstrates our solidarity with our allies and underscores the broadening cooperation to defend against this common regional threat. Our forward deployed force will be the first to the fight, ready to deliver a lethal response at a moment’s notice if our nation calls.”

North Korea has made no secret of its intention to develop the knowhow to launch a nuclear-tipped missile at the United States and has recently threatened the U.S. Pacific territory of Guam. It denounced the U.S. exercises in traditionally robust fashion.

“The U.S. imperialists and the south Korean puppet forces do not hide their bellicose nature, claiming that the exercises are to ‘counter’ the DPRK’s ballistic rocket launches and nuclear weapons development,” the North’s KCNA news agency said, referring to North Korea by its official name, the Democratic People’s Republic of Korea (DPRK).

“But the wild military acts of the enemies are nothing but the rash act of those taken aback by the intermediate-to-long range strategic ballistic rocket launching drill conducted by the army of the DPRK as the first military operation in the Pacific.”

U.S. President Donald Trump has warned North Korea it would face “fire and fury” if it threatened the United States and that the U.S. military was “locked and loaded” in case of any provocation.

Trump on Wednesday declared “talking is not the answer” to resolving the long-standing impasse.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump, who last week said North Korean leader Kim Jong Un was “starting to respect” the United States, wrote on Twitter.

“Talking is not the answer!”

However, U.S. Defence Secretary Jim Mattis, when asked by reporters just hours later if the United States had run out of diplomatic solutions with North Korea, replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Japanese Defence Minister Itsunori Onodera spoke to Mattis by telephone and agreed to keep putting pressure on North Korea in a “visible” form, Japan’s defense ministry said. Japanese Prime Shinzo Abe said he and visiting British Prime Minister Theresa May agreed to urge China, North Korea’s lone major ally, to do more to rein in the North.

They also discussed the possibility of adopting a new U.N. Security Council resolution over North Korea, a British government source said.

SANCTION OPTIONS

The 15-member Security Council on Tuesday condemned the firing of an intermediate range ballistic missile over Japan as “outrageous” and demanded that North Korea halt its weapons program, but the U.S.-drafted statement did not threaten new sanctions.

Japan was pushing the United States to propose new U.N. Security Council sanctions, which diplomats said could target North Korea’s laborers working abroad, oil supply and textile exports.

Diplomats expected resistance from Russia and fellow veto-wielding power China, particularly given new measures were only recently imposed after North Korea staged two long-range missile launches in July.

A U.S. ban on travel to North Korea comes into effect on Friday, curbing one of its few remaining supplies of foreign currency.

China again urged restraint from all parties.

Defence ministry spokesman Ren Guoqiang told a monthly briefing that China would never allow war or chaos on the Korean peninsula, its doorstep, and military means were not an option.

“China strongly demands all sides to exercise restraint and remain calm and not do anything to worsen tensions,” Ren said, adding that Chinese forces were maintaining a normal state of alert along the North Korean border.

Chinese foreign ministry spokeswoman Hua Chunying said the situation on the peninsula was serious.

“I also want to stress that the current tense situation on the peninsula isn’t a screenplay or a video game,” she told reporters.

“It’s real, and is an immense and serious issue that directly involves the safety of people from both the north and south of the peninsula, as well as peace and stability of the entire region.”

‘KEY MILESTONE’

The Pentagon’s Missile Defense Agency and the crew of the guided-missile destroyer USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

The United States and South Korea are technically still at war with North Korea because their 1950-53 conflict ended in a truce, not a peace treaty.

North Korea routinely says it will never give up its weapons programs, calling them necessary to counter perceived American hostility.

For an interactive on North Korea’s missile capabilities, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html

For a graphic on North Korean missile trajectories, ranges, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Tim Kelly, Linda Sieg, William James and Nubohiro Kubo in TOKYO, Michael Martina and Ben Blanchard in BEIJING; Writing by Lincoln Feast and Nick Macfie; Editing by Raju Gopalakrishnan, Robert Birsel)

North Korea tests short-range missiles as South Korea, U.S. conduct drills

North Korea tests short-range missiles as South Korea, U.S. conduct drills

By Jack Kim and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea fired several short-range missiles into the sea off its east coast early on Saturday, South Korea and the U.S. military said, as the two allies conducted annual joint military drills that the North denounces as preparation for war.

The U.S. military’s Pacific Command said it had detected three short-range ballistic missiles, fired over a 20 minute period.

One appeared to have blown up almost immediately while two flew about 250 km (155 miles) in a northeasterly direction, Pacific Command said, revising an earlier assessment that two of the missiles had failed in flight.

The test came just days after senior U.S. officials praised North Korea and leader Kim Jong Un for showing restraint in not firing any missiles since late July.

The South Korean Office of the Joint Chiefs of Staff said the projectiles were launched from the North’s eastern Kangwon province into the sea.

Later on Saturday, the South Korean Presidential Blue House said the North may have fired an upgraded 300-mm caliber multiple rocket launcher but the military was still analyzing the precise details of the projectiles.

Pacific Command said the missiles did not pose a threat to the U.S. mainland or to the Pacific territory of Guam, which North Korea had threatened earlier this month to surround in a “sea of fire”.

Tensions had eased somewhat since a harsh exchange of words between Pyongyang and Washington after U.S. President Donald Trump had warned North Korean leader Kim Jong Un he would face “fire and fury” if he threatened the United States.

North Korea’s last missile test on July 28 was for an intercontinental ballistic missile designed to fly 10,000 km (6,200 miles). That would put parts of the U.S. mainland within reach and prompted heated exchanges that raised fears of a new conflict on the peninsula.

Japan’s Chief Cabinet Secretary Yoshihide Suga said the missiles did not reach its territory or exclusive economic zone and did not pose a threat to Japan’s safety.

MILITARY DRILLS

The South Korean and U.S. militaries are in the midst of the annual Ulchi Freedom Guardian drills involving computer simulations of a war to test readiness and run until Aug. 31.

The region where the missiles were launched, Kittaeryong, is a known military test site frequently used by the North for short-range missile drills, said Kim Dong-yub, a military expert at the Institute for Far Eastern Studies in Seoul.

“So rather than a newly developed missile, it looks to be short range missiles they fired as part of their summer exercise and also in response to the Ulchi Freedom Guardian drill,” he said.

The United States and South Korea are technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty. The North routinely says it will never give up its weapons programs, saying they are necessary to counter perceived U.S. hostility.

Washington has repeatedly urged China, North Korea’s main ally and trading partner, to do more to rein in Pyongyang.

China’s commerce ministry late on Friday banned North Korean individuals and enterprises from doing new business in China, in line with United Nations Security Council sanctions passed earlier this month.

TRUMP BRIEFED

The White House said Trump had been briefed about the latest missiles but did not immediately have further comment.

The U.S. State Department did not immediately comment about the Saturday launches. Secretary of State Rex Tillerson earlier this week credited the North with showing restraint by not launching a missile since the July ICBM test.

Tillerson had said he hoped that the lack of missile launches or other “provocative acts” by Pyongyang could mean a path could be opening for dialogue “sometime in the near future.”

Trump also expressed optimism earlier this week about a possible improvement in relations. “I respect the fact that he is starting to respect us,” Trump said of Kim.

North Korea’s state media reported on Saturday that Kim had guided a contest of amphibious landing and aerial strike by its army against targets modeled after South Korean islands near the sea border on the west coast.

The official KCNA news agency quoted Kim as telling its Army that it “should think of mercilessly wiping out the enemy with arms only and occupying Seoul at one go and the southern half of Korea.”

A new poster on a North Korean propaganda website on Saturday showed a missile dealing “a retaliatory strike of justice” against the U.S. mainland, threatening to “wipe out the United States, the source of evil, without a trace.”

On Wednesday, Kim ordered the production of more rocket engines and missile warheads during a visit to a facility associated with North Korea’s ballistic missile program.

Diagrams and what appeared to be missile parts shown in photographs published in the North’s state media suggested Pyongyang was pressing ahead with building a longer-range ballistic missile that could potentially reach any part of the U.S. mainland including Washington.

(For an interactive package on North Korea’s missile capabilities click http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html)

(Additional reporting by Ju-min Park in Seoul, Nobuhiro Kubo and Tim Kelly in Tokyo, Christian Shepherd in Beijing and David Brunnstrom and Idrees Ali in Washington; Editing by Lincoln Feast and Michael Perry)

Russia sends nuclear-capable bombers on mission near South Korea, Japan

A Tupolev Tu-95MS strategic bomber, the carrier of nuclear rockets, lands at the Yemelyanovo airport near Russia's Siberian city of Krasnoyarsk, June 8, 2011. REUTERS/Ilya Naymushin

MOSCOW (Reuters) – Russian nuclear-capable strategic bombers have flown over the Pacific Ocean, the Sea of Japan, the Yellow Sea and the East China Sea, prompting Japan and South Korea to scramble jets to escort them, Russia said on Thursday.

Russia’s Defence Ministry said in a statement the Tupolev-95MS bombers, code named “Bears” by NATO, flew over neutral waters and were accompanied by Russian Sukhoi-35S fighter jets and A-50 early warning and control aircraft.

It gave no details about the overall number of aircraft that had taken part in what it called a pre-arranged flight and did not say when or why the mission took place.

The TU-95MS bombers were refueled in mid-air during the mission, the ministry said.

During parts of the route, the bombers were escorted by South Korean and Japanese military jets, it added.

Russia, which shares a border with North Korea, has repeatedly voiced concerns about rising tensions on the Korean Peninsula caused by Pyongyang’s nuclear missile program, and has complained about Japan’s plans to deploy a U.S. anti-missile system on its soil.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

U.S., South Korea begin computer-simulated drills which North says are aimed at nuclear war

A U.S. Air Force U-2 Dragon Lady takes part in a drill at Osan Air Base in Pyeongtaek, South Korea, August 21, 2017.

By Christine Kim

SEOUL (Reuters) – South Korean and U.S. forces began computer-simulated military exercises on Monday amid tension over North Korea’s weapons programs, while a report it has earned millions of dollars in exports is likely to raise doubt about the impact of sanctions.

South Korean President Moon Jae-in said the joint drills, called Ulchi Freedom Guardian, were purely defensive and did not aim to increase tension on the peninsula, but North Korea denounced the exercises as preparation for war.

“There is no intent at all to heighten military tension on the Korean peninsula as these drills are held annually and are of a defensive nature,” Moon told cabinet ministers.

“North Korea should not exaggerate our efforts to keep peace nor should they engage in provocations that would worsen the situation, using (the exercise) as an excuse,” he said.

The joint U.S.-South Korean drills last until Aug. 31 and involve computer simulations designed to prepare for war with a nuclear-capable North Korea.

The United States also describes them as “defensive in nature”, a term North Korean state media has dismissed as a “deceptive mask”.

“It’s to prepare if something big were to occur and we needed to protect ROK,” said Michelle Thomas, a U.S. military spokeswoman, referring to South Korea by its official name, the Republic of Korea.

North Korea views such exercises as preparations for invasion and has fired missiles and taken other actions to show its anger over military drills in the past.

“This is aimed to ignite a nuclear war on the Korean peninsula at any cost,” the North’s KCNA news agency said.

“The situation on the Korean peninsula has plunged into a critical phase due to the reckless north-targeted war racket of the war maniacs.”

North and South Korea are technically still at war after the 1950-53 Korean War ended with a truce, not a peace treaty.

North Korea’s rapid progress in developing nuclear weapons and missiles capable of reaching the U.S. mainland has fueled a surge in regional tension and U.N.-led sanctions appear to have failed to bite deeply enough to change its behavior.

China, North Korea’s main ally and trading partner, has urged the United States and South Korea to scrap the exercises. Russia has also asked for the drills to stop but the United States has not backed down.

Speaking in Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said North and South Korea and the United States all needed to make more effort to ease tension.

“We think that South Korea and the United States holding joint drills is not beneficial to easing current tensions or efforts by all sides to promote talks,” she told a daily news briefing.

 

SANCTIONS UNDERMINED

Japan’s Kyodo news agency reported that a confidential U.N. report found North Korea evaded U.N. sanctions by “deliberately using indirect channels” and had generated $270 million in banned exports since February.

The “lax enforcement” of existing sanctions and Pyongyang’s “evolving evasion techniques” were undermining the U.N. goal of getting North Korea to abandon its nuclear and ballistic missile programs, Kyodo quoted the report as saying.

The U.N. Security Council unanimously imposed new sanctions on North Korea on Aug. 5 that could slash its $3 billion annual export revenue by a third. The latest sanctions were imposed after North Korea tested two intercontinental ballistic missiles in July.

U.S. President Donald Trump warned North Korea this month it would face “fire and fury” if it threatens the United States.

The North responded by threatening to fire missiles towards the U.S. Pacific island territory of Guam, but later said it was holding off while it waited to see what the United States would do next.

There will be no field training during the current exercise, according to U.S. Forces Korea.

The United States has about 28,000 troops in South Korea. About 17,500 U.S. service members are participating in the exercise this month, down from 25,000 last year, according to the Pentagon.

U.S. Defense Secretary Jim Mattis said on Sunday the reduction in the number of U.S. troops taking part reflected a need for fewer personnel and was not because of tension with North Korea.

Other South Korean allies are also joining this year, with troops from Australia, Britain, Canada, Colombia, Denmark, the Netherlands, and New Zealand taking part.

 

(Writing by Linda Sieg; Additional reporting by Ben Blanchard in BEIJING; Editing by Paul Tait, Robert Birsel)

 

Korea tensions ease slightly as U.S. officials play down war risks

A South Korean soldier stands guard at a guard post near the demilitarized zone separating the two Koreas in Paju, South Korea, August 14, 2017.

By Christine Kim and Ben Blanchard

SEOUL/BEIJING (Reuters) – Tension on the Korean peninsula eased slightly on Monday as South Korea’s president said resolving North Korea’s nuclear ambitions must be done peacefully and U.S. officials played down the risk of an imminent war.

Concern that North Korea is close to achieving its goal of putting the mainland United States within range of a nuclear weapon has caused tension to spike in recent months.

U.S. President Donald Trump warned last week that the U.S. military was “locked and loaded” if North Korea acted unwisely after threatening to land missiles in the sea near the U.S. Pacific territory of Guam.

“There must be no more war on the Korean peninsula. Whatever ups and downs we face, the North Korean nuclear situation must be resolved peacefully,” South Korean President Moon Jae-in told a meeting with senior aides and advisers.

“I am certain the United States will respond to the current situation calmly and responsibly in a stance that is equal to ours,” he said.

U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson sent a conciliatory message to North Korea in an op-ed piece in the Wall Street Journal on Sunday.

“The U.S. has no interest in regime change or accelerated reunification of Korea. We do not seek an excuse to garrison U.S. troops north of the Demilitarized Zone,” the officials said, addressing some of Pyongyang’s fears that Washington ultimately intends to replace the reclusive country’s leadership.

The article took a softer tone on North Korea than the president, who warned Pyongyang last week of “fire and fury” if it launched an attack.

Mattis and Tillerson underlined that the United States aims “to achieve the complete, verifiable and irreversible denuclearization of the Korean Peninsula and a dismantling of the regime’s ballistic-missile programs.”

“While diplomacy is our preferred means of changing North Korea’s course of action, it is backed by military options,” they said.

The United States is adopting a policy of “strategic accountability” towards North Korea, the officials wrote, but it is not clear how this significantly differs from the “strategic patience” Korea policy of former President Barack Obama.

A global index of stocks rose, after fears of a U.S.-North Korea nuclear standoff had driven it to the biggest weekly losses of 2017, while the dollar also strengthened.

U.S. Central Intelligence Agency Director Mike Pompeo said North Korean leader Kim Jong Un might conduct another missile test but talk of being on the cusp of a nuclear war was overstating the risk.

“I’ve seen no intelligence that would indicate that we’re in that place today,” Pompeo told “Fox News Sunday”.

However, North Korea reiterated its threats, with its official KCNA news agency saying “war cannot be blocked by any power if sparks fly due to a small, random incident that was unintentional”.

“Any second Korean War would have no choice but to spread into a nuclear war,” it said in a commentary.

The United States and South Korea remain technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

MISSILE DOUBTS

South Korean Vice Defence Minister Suh Choo-suk agreed North Korea was likely to continue provocations, including nuclear tests, but did not see a big risk of the North engaging in actual military conflict.

Suh again highlighted doubts about North Korea’s claims about its military capability.

“Both the United States and South Korea do not believe North Korea has yet completely gained re-entry technology in material engineering terms,” Suh said in remarks televised on Sunday for a Korea Broadcasting System show.

Ukraine denied on Monday that it had supplied defense technology to North Korea, responding to an article in the New York Times that said North Korea may have purchased rocket engines from Ukrainian factory Yuzhmash.

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two intercontinental ballistic missile tests in July, tests it often conducts to coincide with important national dates.

Tuesday marks the anniversary of Japan’s expulsion from the Korean peninsula, a rare holiday celebrated by both the North and the South. Moon and Kim, who has not been seen publicly for several days, are both expected to make addresses on their respective sides of the heavily militarised border.

Trump has urged China, the North’s main ally and trading partner, to do more to rein in its neighbor, often linking Beijing’s efforts to comments around U.S.-China trade. China strenuously rejects linking the two issues.

Trump will issue an order later on Monday to determine whether to investigate Chinese trade practices that force U.S. firms operating in China to turn over intellectual property, senior administration officials said on Saturday.

Chinese Foreign Ministry spokeswoman Hua Chunying said that Beijing has said many times the essence of China-U.S. trade and business ties is mutual benefit and that there is no future in any trade war between China and the United States.

“The (Korean) peninsula issue and trade and business issues are in a different category from each other,” Hua added. “On these two issues, China and the United States should respect each other and increase cooperation. Using one issue as a tool for exerting pressure on another is clearly inappropriate.”

China’s Commerce Ministry issued an order on Monday banning imports of coal, iron ore, lead concentrates and ore, lead and sea food from North Korea, effective from Tuesday.

The move followed the announcement of U.N. sanctions against North Korea this month which have to be enforced within 30 days by member states.

U.S. Joint Chiefs of Staff Chairman Joseph Dunford told South Korea’s Moon in a meeting on Monday that U.S. military options being prepared against North Korea would be for when diplomatic and economic sanctions failed, according to Moon’s office.

(Writing by Lincoln Feast and Alistair Bell; Editing by Raju Gopalakrishnan and James Dalgleish)

 

World stocks reach new peak in world full of surprises

Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, August 4, 2017.

By John Geddie

LONDON (Reuters) – World stocks breached record highs on Monday as better-than-expected company earnings and economic data from the United States stole the focus from rising geopolitical tension over North Korea’s nuclear program.

The U.S. dollar  dipped slightly but held on to most of Friday’s gains – its biggest daily rise this year – made after data showed the United States created more jobs than forecast last month.

For those watching second quarter corporate results in recent weeks, there have been many such surprises. Of the nearly 1000 companies in the MSCI world index that have reported, 67 percent have beaten expectations, according to Reuters data.

These two factors helped nudge the flagship share index above a peak breached late last month, setting a new all-time high of 480.09 on Monday.

The Dow Jones, which recorded its eighth consecutive record high on Friday, was set to open up slightly on Monday.

“Global equities remain the preferred asset class for investors and this can be clearly seen in the new highs hit by world indices today,” said Edward Park, investment director at Brooks Macdonald.

“Whilst the headline beat in non-farm payrolls was the primary positive for the market … equity prices are supported by a strong earnings season and relatively low event risk over the next few months.”

Aside from a slight weakening in the Korean won, there was little financial market reaction to the news over the weekend that the U.N. Security Council unanimously imposed new sanctions on North Korea aimed at pressuring Pyongyang to end its nuclear program.

South Korean President Moon Jae-in and his U.S. counterpart, Donald Trump, agreed in a telephone call on Monday to apply maximum pressure and sanctions on North Korea, while China expressed hope that North and South Korea could resume contact soon.

Yields on U.S. and German government bonds – seen as a safe haven in times of stress – held above one-month lows hit at the tail end of last week.

 

ASIAN GAINS

A strong rise in U.S. and Asian stocks propelled the world index to a new high, with the strength of the euro providing a bit of a headache for European markets.

Earlier in Asian trading, MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5 percent while Japan’s Nikkei added 0.5 percent.

Chinese blue chips were bolstered by data showing the country’s foreign exchange reserves rose twice as much as expected in July.

A dramatic reduction in capital outflows – which are seen as one of China’s biggest risks – has helped boost confidence in the world’s second largest economy ahead of a key political leadership reshuffle in coming months.

The euro zone’s main stock index edged lower, however, as the single currency headed back towards 20-month high, a trend which appears to be denting profitability in certain sectors.

Of the MSCI Europe companies having reported, 61 percent have either met or beat expectations. But focusing on industrial firms – of which many depend on exports, and are sensitive to a stronger euro – the beat ratio is just 37 percent.

“The euro is likely to have an impact in the third quarter, with a 10 percent appreciation of the euro lowering earnings per share by around 5 percent,” said Valentin Bissat, senior strategist at Mirabaud Asset Management.

DOLLAR DOUBTS

The upbeat U.S. jobs data offers policymakers some assurance that inflation will gradually rise to the central bank’s 2 percent target, and likely clear the way for a plan to start shrinking its massive bond portfolio later this year.

But market pricing shows investors are still about evenly divided over whether the Fed will also opt to raise rates again in December.

For some analysts, Monday’s pull back in the dollar backs some views in markets that Friday’s rally may not have legs.

The dollar index, which tracks the greenback against a basket of six global peers, inched back 0.2 percent to 93.361. It rallied 0.76 percent on Friday, its biggest one-day gain this year.

The dollar slipped 0.2 percent against the euro to $1.1796 per euro, after surging 0.8 percent on Friday.

“The most logical view here is the moves on Friday were clearly just a sizeable covering of USD shorts, from what was one of the biggest net short positions held against the USD for many years,” Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.

For the dollar rally to gain momentum, the market needs to change its interest rate pricing, Weston added.

In commodities, oil prices slid back from nine-week highs hit on Aug. 4 as worries lingered over high production from OPEC and the United States.

Global benchmark Brent crude futures were down 60 cents, or 1.14 percent, at $51.82 a barrel. They traded as low as $51.56 a barrel earlier in the day.

Gold  steadied as the dollar surrendered some of its gains, but remained under pressure. The precious metal was marginally lower at $1,257.41 an ounce, extending Friday’s 0.8 percent loss.

 

(Reporting by John Geddie in London and Nichola Saminather in Singapore Additional reporting by Helen Reid in London; Editing by Richard Balmforth)

 

U.S. flies bombers over Korean peninsula after North Korea missile test

One of two U.S. Air Force B-1B Lancer bombers flies a 10-hour mission from Andersen Air Force Base, Guam, into Japanese airspace and over the Korean Peninsula,

By James Pearson and Michelle Nichols

SEOUL/NEW YORK (Reuters) – The United States flew two supersonic B-1B bombers over the Korean peninsula in a show of force on Sunday and the U.S. ambassador to the United Nations said China, Japan and South Korea needed to do more after Pyongyang’s latest missile tests.

North Korea said it conducted another successful test of an intercontinental ballistic missiles (ICBM) on Friday that proved its ability to strike America’s mainland, drawing a sharp warning from U.S. President Donald Trump.

Trump’s ambassador to the United Nations Nikki Haley said on Twitter on Sunday that the United States was “done talking” about North Korea, which was “not only a U.S. problem.”

“China is aware they must act,” Haley said, urging Japan and South Korea to increase pressure and calling for an international solution.

China, the North’s main ally, said it opposed North Korea’s missile launches, which it said violate UN Security Council resolutions designed to curb Pyongyang’s banned nuclear and missile programs.

“At the same time, China hopes all parties act with caution, to prevent tensions from continuing to escalate,” China’s foreign ministry said in a statement on Saturday.

Early in his presidency, Trump met with Chinese President Xi Jinping and had expressed hope Beijing would use its economic clout to curb North Korea’s nuclear ambitions.

But on Saturday, Trump said on Twitter that he was “very disappointed in China” which he said profits from trade with the United States but does “NOTHING for us with North Korea, just talk. We will no longer allow this to continue,” he said.

 

DIRECT RESPONSE

North Korean leader Kim Jong Un personally supervised the midnight test launch of the missile on Friday night and said it was a “stern warning” for the United States that it would not be safe from destruction if it tries to attack, the North’s official KCNA news agency said.

North Korea’s state television broadcast pictures of the launch, showing the missile lifting off in a fiery blast in darkness and Kim cheering with military aides.

The missile test came a day after the U.S. Senate approved a package of sanctions against North Korea, Russia and Iran.

The B-1B flight was a response to the missile test and the July 3 launch of the “Hwasong-14” rocket, the Pentagon said. The bombers took off from a U.S. air base in Guam, and were joined by Japanese and South Korean fighter jets during the exercise, according to the statement.

“North Korea remains the most urgent threat to regional stability,” Pacific Air Forces commander General Terrence J. O’Shaughnessy said in a statement.

“If called upon, we are ready to respond with rapid, lethal, and overwhelming force at a time and place of our choosing.”

Also on Sunday, the U.S. Missile Defense Agency announced the United States had successfully shot down a medium-range missile in the latest test of its THAAD missile defense program which is designed to protect the country against potential threats from countries such as North Korea and Iran.

The test was planned well before the rising tensions with North Korea and involved a medium-range missile, not the long-range types being tested by the North Koreans.

 

FAR REACH

The Hwasong-14, named after the Korean word for Mars, reached an altitude of 3,724.9 km (2,314.6 miles) and flew 998 km (620 miles)for 47 minutes and 12 seconds before landing in the waters off the Korean peninsula’s east coast, KCNA said.

Western experts said calculations based on that flight data and estimates from the U.S., Japanese and South Korean militaries showed the missile could have been capable of going as far into the United States as Denver and Chicago.

David Wright of the U.S.-based Union of Concerned Scientists wrote in a blog post that if it had flown on a standard trajectory, the missile would have had a range of 10,400 km (6,500 miles).

U.S. Senator Dianne Feinstein, a leading Democrat on the Senate intelligence committee, said she saw the test as “a clear and present danger to the United States.”

“I think the only solution is a diplomatic one. I’m very disappointed in China’s response, that it has not been firmer or more helpful,” Feinstein told CBS television’s “Face the Nation,” urging the administration to begin talks with the North.

U.S. intelligence officials assess that even if North Korea does develop a reliable, nuclear-capable ICBM, which some say it remains several steps short of doing, the weapon would be almost useless except to deter the conventional attacks that Kim fears.

Intelligence experts have concluded that Kim will not abandon his pursuit of a deliverable nuclear weapon.

“Kim is determined to secure international recognition of the North as a nuclear armed state, for the purposes of security, prestige, and political legitimacy,” says the National Intelligence Council’s January Global Trends report.

 

(Additional reporting by Sarah N. Lynch, Susan Cornwell, John Walcott and Roberta Rampton in Washington; Editing by Sam Holmes and Phil Berlowitz)

 

Fairy tales overcome nightmares at South Korea’s militarized border town

Visitors are seen at a shopping mall near the demilitarized zone separating the two Koreas in Paju, South Korea, July 16, 2017. Picture taken on July 16, 2017. REUTERS/Kim Hong-Ji

By Hyunjoo Jin and Haejin Choi

SEOUL (Reuters) – A half-hour’s drive north of Seoul, along a highway lined with barbed wire, lie two shopping malls the size of several football stadiums, a stone’s throw from the world’s most militarized border.

The malls are in the city of Paju, gateway to the U.N. truce village of Panmunjom, where military officers from the combatants of the 1950-53 Korean war discuss armistice matters — when the two sides are on speaking terms, which they aren’t these days.

“Fairy tales come true in Paju”, is the advertising lure from the Korean Tourism Board. But it was nightmares that were all too true here during the Korean war, when Paju featured some of its fiercest battles. Paju is home to the country’s only “enemy’s cemetery”, where the remains of Chinese and North Korean soldiers are buried.

That’s all but forgotten history now. On the rooftop of the Lotte Premium Outlet, children and their parents can view North Korea across the Imjin River through binoculars. The mall also features a merry-go-round, cinema, and a mini-train.

At Shinsegae Paju Premium Outlet, about a dozen children jump and scream around a fountain inside the mall on a sizzling, July summer day. Just a couple miles away is a village modeled after France’s tourism center of Provence, where restaurants, bakeries and clothing shops are decorated like a children’s playbook.

Elsewhere in Paju, kids carved wood to make Pinocchio dolls at a museum, while adults tasted wine made of meoru, a Korean wild grape, at a farm.

Paju, indeed, shows little signs of the tensions that have arisen since North Korea marked the U.S. July 4th holiday with a successful launch of what it said was an intercontinental ballistic missile. The missile test prompted the United States and South Korea this month to conduct air force bomber exercises in the skies near here.

LITTERING LAND MINES

But at Paju’s Provence Village, Kim Ki-deok, a 41-year-old office worker from south of Seoul and father of a 4-year-old boy, said he doesn’t feel any more danger from being close to the border.

“If North Korea really wants, they can shoot missiles far away,” said Kim. “I feel refreshed and would like to come here again.”

The sense of insouciance can even be seen at the U.S. military’s Camp Bonifas on the outskirts of town, home to a three-hole golf course that Sports Illustrated once called the “world most dangerous golf course” because of the Korean War vintage land mines littering the area.

The Korean War, in which the United States fought alongside South Korea and China with the North, ended in a truce that has yet to be replaced by a peace agreement and has left the two sides technically at war.

It means South Koreans have long grown accustomed to living in a doomsday scenario, one that includes up to 10,000 artillery guns pointed toward the South and capable at any moment, in the words of North Korea’s propaganda machine, of turning Seoul into a “sea of fire” and a “pile of ashes.”

For 30-year-old Park Chol-min, it’s nothing more than empty threats.

“It’s just a show or performance. I think North Korea has a lot more to lose than to gain by turning Seoul into a sea of fire,” said the video game producer from Seoul, visiting the Shinsegae mall with his girlfriend to buy her a birthday gift.

DEFENSE MECHANISM

Paju stepped up North Korea-related tourism in the 2000s, when liberal governments launched a “Sunshine Policy” of engagement with North Korea. Foreigners and locals flocked to Panmunjom to see stony-faced North Korean soldiers on guard and an underground tunnel built by the North, and to Imjingak, which houses the Bridge of Freedom, where prisoners of war were traded at the end of the war.

The tourism push took a huge leap late in 2011, when two massive premium outlets run by South Korean retail giants Shinsegae and Lotte opened. More than 12 million visitors went to the two malls last year — more than Seoul’s population of 10 million.

It was not long after the malls opened, though, when North Korea dramatically stepped up the pace of missile and nuclear tests under Kim Jong Un, who took power in Pyongyang when his father Kim Jong-il died in December 2011.

“The tests have not dented visitor interest at all,” said a Paju city official in charge of tourism, who asked not to be named. “It has become just part of a daily life, although it is sad to say so.”

Normalizing the North Korean threat is part of a “defense mechanism” for South Koreans, says Kwak Keum-joo, a psychology professor at Seoul National University.

“I feel anxious about North Korea when I travel overseas. Once I return to Korea, I forget it,” Kwak said.

That’s not so easy for 74-year-old Woo Jong-il, who lives in a small village of Manu-ri, just south of the Imjin river that divides the two Koreas.

Woo built a bunker in his backyard, one of several residents in Manu-ri who did so in the early 1970s, when bullets fired from North Korea wounded several in his village and damaged a house next door.

“I don’t think this is obsolete even now,” he said, showing a visitor around a dark basement shelter just big enough to accommodate his seven family members.

“I feel anxious. How can I not be? We are at the front so we can be victims. If the relationship with the North worsens anytime, this bunker makes me feel safe.”

(Additional reporting by Heekyong Yang,; Editing by Soyoung Kim and Bill Tarrant)

No Korean military talks after North snubs South’s call

A concrete border is seen as a South Korean soldier stands guard at the truce village of Panmunjom, South Korea July 19, 2017. REUTERS/Kim Hong-Ji

SEOUL (Reuters) – South Korea’s proposed military talks aimed at easing tension between the two Koreas planned for Friday failed to happen after the North snubbed the call, a setback for new President Moon Jae-in’s hopes for dialogue.

The North has remained silent on the South Korean proposal, made on Monday, for talks on ways to avoid hostilities along their heavily fortified border.

Moon took office in May pledging to engage the North in dialogue, as well as to bring pressure on it to impede its nuclear and missile programs.

The proposal for talks came after the North said it conducted its first test of an intercontinental ballistic missile on July 4, and said it had mastered the technology to mount a nuclear warhead on it.

South Korean defense ministry spokesman Moon Sang-gyun told a briefing the military talks proposed for Friday were practically impossible as the North had not responded.

“It is an urgent needed task for peace and stability on the Korean peninsula to restore dialogue in the military area and to ease military tension between the South and the North,” he said.

Moon said the proposal for talks still stood and he urged the North to respond.

It was the first formal overture by South Korea since cross-border ties broke down early last year under the government of Moon’s predecessor, who imposed unilateral sanctions on the North for its nuclear tests and missile launches.

The North has conducted its fourth and fifth nuclear tests and a quick succession of missile-related activities since the beginning of 2016, after leader Kim Jong Un had pledged to improve ties with the South in a New Year’s address.

The South had proposed talks to discuss ways to end activities on the border that have fueled tension.

By that, South Korea usually refers to loudspeaker propaganda broadcasts by both sides, while North Korea wants an end to joint U.S.-South Korea military exercises.

(Reporting by Jack Kim; Editing by Michael Perry, Robert Birsel)

North Korea conducts public executions for theft, watching South Korea media: report

A graphic showing suspected killing sites in North Korea is seen in a report compiled by Transitional Justice Working Group, during an interview with a researcher from the group in Seoul, South Korea, July 19, 2017. REUTERS/Kim Hong-Ji

By Christine Kim

SEOUL (Reuters) – North Korea carries out public executions on river banks and at school grounds and marketplaces for charges such as stealing copper from factory machines, distributing media from South Korea and prostitution, a report issued on Wednesday said.

The report, by a Seoul-based non-government group, said the often extra-judicial decisions for public executions are frequently influenced by “bad” family background or a government campaign to discourage certain behavior.

The Transitional Justice Working Group (TJWG) said its report was based on interviews with 375 North Korean defectors from the isolated state over a period of two years.

Reuters could not independently verify the testimony of defectors in the report. The TJWG is made up of human rights activists and researchers and is led by Lee Younghwan, who has worked as an advocate for human rights in North Korea.

It receives most of its funding from the U.S.-based National Endowment for Democracy, which in turn is funded by the U.S. Congress.

The TJWG report aims to document the locations of public killings and mass burials, which it says had not been done previously, to support an international push to hold to account those who commit what it describes as crimes against humanity.

“The maps and the accompanying testimonies create a picture of the scale of the abuses that have taken place over decades,” the group said.

North Korea rejects charges of human rights abuses, saying its citizens enjoy protection under the constitution and accuses the United States of being the world’s worst rights violator.

However, the North has faced an unprecedented push to hold the regime and its leader, Kim Jong Un, accountable for a wide range of rights abuses since a landmark 2014 report by a United Nations commission.

U.N. member countries urged the Security Council in 2014 to consider referring North Korea and its leader to the International Criminal Court (ICC) for crimes against humanity, as alleged in a Commission of Inquiry report.

The commission detailed abuses including large prison camps, systematic torture, starvation and executions comparable to Nazi-era atrocities, and linked the activities to the North’s leadership.

North Korea has rejected that inquiry’s findings and the push to bring the North to a tribunal remains stalled due in part to objections by China and Russia, which hold veto powers at the U.N. Security Council.

TJWG said its project to map the locations of mass graves and executions has the potential to contribute to documentation that could back the push for accountability and future efforts to bring the North to justice.

It said executions are carried out in prison camps to incite fear and intimidation among potential escapees, and public executions are carried out for seemingly minor crimes, including the theft of farm produce such as corn and rice.

Stealing electric cables and other commodities from factories to sell them and distribution of South Korean-produced media are also subject to executions, which are most commonly administered by shooting, it said.

Testimonies also showed people can be beaten to death, with one interviewee saying: “Some crimes were considered not worth wasting bullets on.”

Government officials were executed on corruption and espionage charges, and bureaucrats from other regions would be made to watch “as a deterrence tactic”, the report said.

Defectors from the North have previously testified to having witnessed public executions and rights abuses at detention facilities.

(Reporting by Christine Kim; Editing by Paul Tait)