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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Thai "red shirt" leaders escape arrest 2:48am EDT UPDATE 1-US carriers cancel Europe flights due to ash 15 Apr 2010 Volcanic ash turns northern Europe into no-fly zone | Video 2:28am EDT Icelandic volcano eruption intensifies | Video 15 Apr 2010 Icelandic volcano eruption intensifies | Video 15 Apr 2010 Obama makes hospitals allow gay visitation rights 15 Apr 2010 Chocolate may be good medicine for liver patients 15 Apr 2010 Icelandic volcano eruption intensifies | Video 15 Apr 2010 More U.S. babies born with syphilis, report finds 15 Apr 2010 Chocolate may be good medicine for liver patients 15 Apr 2010 North Korea suspected in blast that sank warship Jon Herkovitz SEOUL Fri Apr 16, 2010 12:18am EDT Related News South Korea raises war ship, seeks clues on blast Thu, Apr 15 2010 No South Korea rating rise due to North risk: S&P Thu, Apr 15 2010 Seoul shares post new 22-month closing high Thu, Apr 15 2010 North Korea denies involved in South ship sinking Sat, Apr 10 2010 North Korea parliament meets, leader Kim skips session Fri, Apr 9 2010 The stern of the Navy corvette Cheonan is docked on a barge off Baengnyeongdo island near the maritime border with North Korea, northwest of Seoul April 16, 2010. Credit: Reuters/Lee Jung-Hoon/Yonhap SEOUL (Reuters) - The likelihood North Korea sank a South Korean naval ship near their disputed border rose when Seoul said on Friday an external explosion probably caused the ship to split in two, killing 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. "Conclusively, after a visual inspection, there is a higher chance of an outer explosion than an internal one," Yoon Duk-yong, a top investigation official, told a news conference. Local media is increasingly pinning the blame on North Korea, in the absence of any other likely reasons for the explosion which sank the corvette late last month, thought to have killed 46 sailors. Yoon said the twisting of metal from the salvaged stern that was raised on Thursday indicated the blast had come from outside but the team will wait until the rest of the ship was raised and other evidence gathered before reaching a final conclusion. "The Cheonan was also halved in the middle. Therefore, it is highly likely that a torpedo fired from a submarine or mine destroyed the ship," military expert and former submarine captain Jung Sung wrote in the JoongAng Ilbo daily. The threat of triggering a major conflict, and so hurting its own rapid economic recovery, means South Korea is unlikely to take military action against the North if it does turn out to have deliberately sunk the ship, analysts said. Relations between the two have already turned frosty since President Lee Myung-bak came to power in Seoul over two years ago, angering Pyongyang by ending the financial largesse that had for years been a lifeline for the broken North Korean economy. In a fit of pique, the North this week froze assets of a South Korean firm at a joint tourism project north of the border once hailed as a symbol of cooperation. The North has made no public mention of the ship sinking. Uncertainty over North Korea's behavior and the health of its iron leader have become a major risk for the South. Ratings agency Standard & Poor's said on Thursday it did not plan to raise the South's sovereign rating -- which would normally make it cheaper for South Korean borrowers overseas -- while risks involving Pyongyang's leadership persist. Thirty-six of the 46 sailors who went missing were recovered from the ship's stern, the defense ministry said. The bodies of two other sailors were found before the salvage operation, and 58 were rescued alive. South Korea expects to raise the front part of the ship in the next few days as it searches for clues to one if its deadliest naval disasters since the 1950-53 Korean war ended in a cease fire. The 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. (Additional reporting by Christine Kim, editing by Jonathan Thatcher and Sugita Katyal) World South Korea North Korea More from Reuters Special Report: Sweethearts in crime Meet Gaston and Teresita Cantens. Or, Jennifer Wang and Ruben Chen. These husband and wife con artists are no Wall Street novelty act. Reuters investigates the rise in married couples defrauding investors out of millions of dollars. Full Article SEC watchdog to fault Stanford probe: sources Corporate Crime Obama: Mars by the mid-2030s President Obama vowed to "leap into the future" with the U.S. space program, saying he expects a manned mission to Mars by the mid-2030s. Full Article | Slideshow Why go to an asteroid? 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Factbox: Volcanoes and ash clouds Slideshow: Iceland's volcanic ash "All four engines have stopped" World © 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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