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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Broadcaster Larry King seeks 8th divorce 14 Apr 2010 Russia says Iran reactor on track for August launch 14 Apr 2010 Thai red shirts regroup, say no action for 2 days 3:23am EDT Concern for shelter after China quake kills 617 | Video 3:04am EDT WRAPUP 2-China's strong start to 2010 backs tightening case 1:50am EDT Exclusive: Climate change could raise cost of allergies 14 Apr 2010 UPDATE 1-Suntech,Trina Solar sign $11.7 bln loan deals 14 Apr 2010 World marine debris totals 10 mln pieces in 1-day cleanup 13 Apr 2010 UPDATE 1-Bayer gains on renewed Novartis bid talk 13 Apr 2010 Tres Amigas grid hub attracts more than renewables 14 Apr 2010 Bernd Debusmann U.S. aid, Israel and wishful thinking Providing Israel with generous aid made sense during the Cold War. Does it still? Commentary South Korea raises war ship that sank near North Jon Herskovitz and Christine Kim SEOUL Thu Apr 15, 2010 3:15am EDT Related News Seoul shares post new 22-month closing high 2:59am EDT North Korea denies involved in South ship sinking Sat, Apr 10 2010 North Korea parliament meets, leader Kim skips session Fri, Apr 9 2010 North Korea says will push South out of tourism deal Thu, Apr 8 2010 North Korea's Kim: Mentored, paid, "betrayed" by China Mon, Apr 5 2010 SEOUL (Reuters) - South Korea on Thursday lifted the stern of a naval ship that sank after an unexplained explosion near a contested sea border with North Korea to see if Pyongyang may have had a hand in the incident that killed dozens. World | South Korea | North Korea South Korea's defense minister said this month the 1,200-tonne Cheonan may have been hit by a torpedo, immediately putting suspicion on North Korea and stoking concerns that the incident could start a conflict on the long divided peninsula. Several bodies of the 46 sailors who went missing were seen in the ship's stern, which is thought to have gone down with dozens trapped inside, a defense official told local media. A Defense Ministry spokeswoman declined to comment. Government officials said Seoul was looking at all possibilities for the sinking and expected the raised stern to provide clues on what caused the explosion. The salvage operation comes as tensions on the troubled peninsula have increased with the North freezing assets of a South Korean firm at a joint tourism project north of the border once hailed as a symbol of cooperation. The stern was raised above the water line in the morning and drained before being placed on a barge. Seoul has few appealing options if the North was behind the sinking, but would not likely take an aggressive stance because it could escalate into major conflict that would harm the South's interests, analysts said. "I do not think South Korean government will go to war over this ... it will probably try to handle it more diplomatically," said Kim June-kie, a market analyst at SK Securities in Seoul. Shares on Wall Street fell when reports came out shortly after the Cheonan's sinking on March 26 that said the South was looking into a possible North Korean torpedo attack. The price to insure Korean sovereign debt also rose at that time to 83 basis points from 78 basis points, according to two trading sources. That meant the cost to insure $10 million in South Korean debt increased by $5,000 to $83,000. The ship sinking could also complicate the resumption of stalled international talks on ending North Korea's atomic arms program in return for aid to prop up its broken economy, experts said. North Korean leader Kim Jong-il was expected to visit his neighbor and biggest benefactor China in the coming weeks for a trip supposed to help prod Pyongyang back to the dormant talks among the two Koreas, China, Japan, Russia and the United States. Kim faced a rare crisis to his iron grip on power late last year when a botched currency reform sparked almost unheard of civil unrest, angering an impoverished public by raising prices and making it even more difficult to obtain already scarce food. (Additional reporting by Jungyoun Park, editing by Jonathan Thatcher and Sanjeev Miglani) World South Korea North Korea More from Reuters Concern for shelter after China quake kills 617 YUSHU, China (Reuters) - The death toll from an earthquake in China's remote and mountainous Yushu county has soared to 617, even as convoys of trucks carried in supplies and tents on Thursday for survivors braving the cold. | Video Sudan ruling party says nine members killed in south South Korea raises war ship that sank near North Thai red shirts regroup, say no action for 2 days Australia's Rudd may call referendum on health impasse Senegal's Koranic "scholars" face beatings: report » More Top News Wei Gu: China's currency lesson China should take a page from Singapore's book as it seeks to make its exchange rate more flexible without abandoning stability. Commentary Emerging markets seek clout BRICs should butt out on yuan: Goldman GLOBAL MARKETS Soros warns on market crash Billionaire financier George Soros warns that markets could be hurtling towards an even bigger boom and bust than the credit crisis. Full Article Are some banks too "clubby" to fail? Obama pushes on financial reform Regulation © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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