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Edition: U.S. Article Comments (2) Slideshow Save Email Print Reprints Most Popular Most Shared Sex virus blamed for rise in head and neck cancers 26 Mar 2010 South Korean navy ship sinks; North link "unlikely" 2:52am EDT Fox cancels "24" TV show; movie version is next 26 Mar 2010 U.S. looks to export drone technology to allies 25 Mar 2010 Ailing Dennis Hopper gets Hollywood star | Video 26 Mar 2010 Fox cancels "24" TV show; movie version is next 26 Mar 2010 UPDATE 1-Medicines Co challenges Angiomax patent decision 26 Mar 2010 AT&T sees $1 billion healthcare related charge 26 Mar 2010 UPDATE 1-Cemex seeks to issue 750 million shares 26 Mar 2010 Gnome poster removed before Medvedev visit? 19 Feb 2010 South Korean navy ship sinks; North link "unlikely" Jo Yonghak BAENGNYEONGDO, South Korea Sat Mar 27, 2010 2:52am EDT Related News South Korea says must check reasons for ship sinking Fri, Mar 26 2010 South Korea ship sinking may be North's grandstanding Fri, Mar 26 2010 < 1 / 7 > View Full Size BAENGNYEONGDO, South Korea (Reuters) - South Korea's president ordered an investigation on Saturday into how a navy ship sank near the disputed North Korea border but officials said it was unlikely to have been the result of an attack by Pyongyang. World | South Korea | North Korea Initial speculation that North Korea might have sunk the ship spooked Wall Street, where share prices dipped overnight partly on geopolitical concerns, and the won dropped against the dollar. "Every possibility should be considered in investigating causes of the ship sinking and the investigation must be fast and thorough," President Lee Myung-bak's office quoted him as telling an emergency government meeting early on Saturday. A Reuters reporter on Baengnyeongdo island near where the ship sank said about 10 navy and coastguard vessels, along with divers, were searching the area and the wreckage. MBC television quoted defense ministry sources as saying it was unlikely the prickly North was involved, although they were checking for a possible link. The ministry was also investigating whether it was the result of an internal explosion. Presidential Blue House spokeswoman Kim Eun-hye also said there had been no unusual movements by North Korea, which has a million-strong military, much of it near the heavily armed border that has divided the Korean peninsula for more than 50 years. Local media quoted a presidential official as saying satellite pictures and other information showed no sign of the North Korean military in the area at the time of the sinking. The defense ministry said 58 of the 104 on board had been rescued and Yonhap quoted navy officials as saying several had died. It was later quoted as saying 46 crew were still missing. "An unidentified reason caused a hole in the ship, which led to its sinking. Currently 58 have been rescued out of the total 104 on board. Rescue efforts are under way," the ministry said. "The ship fired a warning shot at an unidentified object, and the object was later suspected to have been a flock of birds. But we are checking," it said. LOUD FIRING Earlier, South Korean media had quoted officials as saying the North could have torpedoed the ship. One said it could have struck a mine. "The loud firing sound remained for about 15 minutes, while I watched TV. I never heard such loud firing sound in my entire life staying at (the) island, and the sound was definitely different from those heard from usual drills," Yonhap news agency quoted one 56-year-old resident on a nearby island as saying. MBC TV said it could take up to 20 days to raise the 1,200-tonne ship. It sank in waters 15-20 meters deep. The sinking occurred as the impoverished North has grown increasingly frustrated by its wealthy neighbor, which has given the cold shoulder to recent attempts to reopen a lucrative tourist business on the northern side of the frontier. It also coincides with mounting pressure on Pyongyang to end a more than one-year boycott of international talks to end its efforts to build a nuclear arsenal. There have been concerns that the North might resort to military grandstanding, a tactic it has often used in the past when it is gearing up for negotiations with the outside world. Reports of a possible naval clash saw the won weaken roughly 0.45 percent against the dollar and were cited by analysts as one reason for a dip in U.S. stocks. Markets have become largely inured to saber-rattling by North Korea but it has in the past caused brief jitters that were quickly reversed. The ship sank near the disputed Yellow Sea border off the west coast of the peninsula which was the scene of two deadly naval fights between the rival Koreas in the past decade. Navies from the rival Koreas exchanged gunfire for the first time in seven years in the Yellow Sea in November, damaging vessels on both sides. The West has been pressuring North Korea to give up efforts to build nuclear weapons, promising help for its broken economy if it does so. There has been widespread speculation that North Korea's ruler, Kim Jong-il, was about to visit China, his only significant ally and on which he has depended almost entirely for economic aid after a new conservative government in Seoul effectively ended years of free-flowing assistance. (Additional reporting by Cho Mee-young, Cheon Jong-woo, Kim Miyoung, Jon Herskovitz and Jonathan Thatcher; Writing by Jonathan Thatcher; Editing by Paul Tait) World South Korea North Korea Comments See All Comments (2) | Post Comment Mar 26, 2010 10:32pm EDT Let’s say a prayer for the South Korean navy crew that perished Story_Burn Report As Abusive Mar 27, 2010 1:50am EDT Quote; “The ship fired a warning shot at an unidentified object, and the object was later suspected to have been a flock of birds. But we are checking,” it said.” Apparently, birds are getting very dangerous. avgprsn Report As Abusive See All Comments (2) Add a Comment More from Reuters Special Report: Escape from Wall Street When it appeared that investing with Warren Buffett wasn't good enough, one former UBS adviser knew he was done with big banks and has since set off on his own. He's not alone. Full Article Video: Broker finds benefits out on his own Video: Becoming a breakaway broker New retirement plan rules could hit brokers Financials Bernd Debusmann: How to launder dirty dollars A stash of $1 million weighs about 100 pounds, and trained dogs can sniff it out in a heartbeat. But drug cartels and financiers of terrorism have found a dangerous loophole that helps them "clean" dirty money legally. 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Full Article The lost battle for immigration reform Lifestyle © 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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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