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Edition: U.S. Article Comments (2) Save Email Print Reprints Most Popular Most Shared UPDATE 2-'South Park' airs 'censored' episode after threat 1:23am EDT Obama backers show signs of disappointment 21 Apr 2010 Goldman CEO attacks SEC fraud charges: report 21 Apr 2010 UPDATE 1-US Congress may push immigration over climate bill 21 Apr 2010 North Korea torpedoed South's navy ship: report 1:35am EDT Tim Urban out as "Idol" raises millions for charity 21 Apr 2010 With Goldman charged, rivals smell blood 20 Apr 2010 "Glee's" Madonna album eyes No. 1 on U.S. chart 21 Apr 2010 Obama to urge tougher rules for Wall Street 1:12am EDT New $100 note aims to deter counterfeiters 21 Apr 2010 UPDATE 2-'South Park' airs 'censored' episode after threat 1:23am EDT UPDATE 1-US Congress may push immigration over climate bill 21 Apr 2010 Obama to urge tougher rules for Wall Street 1:12am EDT Fast-growing Facebook aims for more social Web 21 Apr 2010 Diabetes drug tied to reduced breast cancer risk 21 Apr 2010 With Goldman charged, rivals smell blood 20 Apr 2010 "South Park" airs censored episode after threat 1:30am EDT Lisa Ray -- cancer-free and ready to re-embrace India 21 Apr 2010 Obama backers show signs of disappointment 21 Apr 2010 North Korea torpedoed South's navy ship: report 1:35am EDT North Korea torpedoed South's navy ship: report Jack Kim SEOUL Thu Apr 22, 2010 1:35am EDT Related News South Korea's Lee vows to root out navy sinking culprit Mon, Apr 19 2010 Q+A: What might be at stake in South Korean ship sinking Sun, Apr 18 2010 North Korea denies it sank South's navy ship Sat, Apr 17 2010 North Korea denies it sank South's navy ship Sat, Apr 17 2010 North Korea suspected in blast that sank warship Fri, Apr 16 2010 SEOUL (Reuters) - South Korea's military believes a torpedo fired from a North Korean submarine sank its navy ship last month, based on intelligence gathered jointly with the United States, a news report said on Thursday. World | South Korea | North Korea The Yonhap news report appears to be the clearest sign yet that Seoul blames Pyongyang for what would be one of the deadliest incidents between the rivals since the end of the 1950-53 Korean War. It puts more political pressure on President Lee Myung-bak, but analysts do not see it triggering a war. The military's intelligence arm sent the report of "certain" North Korean involvement to the presidential Blue House soon after the incident, Yonhap quoted a high-ranking military source as saying. Lee's government has come under criticism for what many see as its overly cautious handling of possible links to North Korea. It has called for a thorough investigation of the sinking, thought to have killed 46 sailors. Market players have been calmed by the South's measured response, seeing Seoul as unlikely to take aggressive moves that would escalate into armed conflict and harm the export-driven economies of North Asia, responsible for about one-sixth of the global economy. South Korea's defense ministry had no comment on the report. "North Korean submarines are all armed with heavy torpedoes with 200 kg (441 lb) warheads," the military source was quoted as saying by Yonhap. "It is the military intelligence's assessment that the North attacked with a heavy torpedo. "The military intelligence has made the report to the Blue House and to the Defense Ministry immediately after the sinking of the Cheonan that it is clearly the work of North Korea's military," the source was quoted as saying. South Korea plans to soon raise the front half of the 1,200-tonne Cheonan, which went down near a disputed sea border with North Korea, and will issue its verdict on the cause of the explosion that sank the warship after that. Analysts said there is little South Korea can do even if Pyongyang is found to be the culprit, because a military response was likely to hurt its own quickly recovering economy and bolster North Korean leader Kim Jong-il's standing at home. Lee ended a decade of no-questions-asked aid to the destitute North and called for a hardline push for Pyongyang to disarm. "The nuclear issue has still not been resolved. This and the Cheonan incident all serve to inflict a negative impact on the Lee administration," said Lee Nam-young, a political analyst at the Sejong University in Seoul. The reclusive North has denied it had anything to do with the sinking near the disputed sea border off the west coast that has been the scene of two deadly naval battles in the past decade. It accused Lee of using the incident for political gains ahead of crucial local elections in June. South Korea has few economic options left to hurt the North. It has already suspended its unconditional handouts that once were worth more than $1 billion to the North, which has an estimated yearly GDP of $17 billion. The greatest risk to the region is a brief armed conflict where North Korea fires tens of thousands of artillery shells into the Seoul area, home to about half of the South's 49 million people, and fires its hundreds of missiles at major cites in the South and Japan. Yonhap said the South Korean and U.S. military suspected the North was stepping up drills to infiltrate a submarine south of the naval border, hidden among Chinese fishing boats, and wage a surprise attack against the South. (Reporting by Jack Kim and Christine Kim; Editing by Jon Herskovitz and Alex Richardson) World South Korea North Korea Comments See All Comments (2) | Post Comment Apr 21, 2010 10:37pm EDT the most interesting part of that report was they call the presidental house, the “blue house” lol… william Report As Abusive Apr 22, 2010 3:23am EDT the result of appeasing dictators,bullies or aggressors is always the same.more aggression.urkel will get the same result as bush and clinton did before. barbarossa Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters European skies open but airline schedules scrambled FRANKFURT (Reuters) - Europe's skies were open for business on Wednesday but, with so many planes having been grounded by the volcanic ash from Iceland, it could take days or even weeks to clear the backlog. | Video Obama to urge tougher rules for Wall Street Congress may push immigration over climate bill Obama: No abortion litmus test for high court pick China military paper spells out nuclear arms stance Tension deepens in Bangkok, fears unrest may spread | Video » More Top News China smells Goldman blood The cutthroat banking world knows to pounce when a competitor is in a PR mess. China in particular is well aware of how it can capitalize on Goldman's woes. Full Article Goldman Asia clients are loyal for now How bad could this get for Goldman? Paulson reassures on Goldman role Goldman Sachs David Schlesinger: What I want from the Pentagon The harrowing video of the death of two Reuters journalists in Iraq gave the world a peek at tragedy. The Pentagon can help ensure it doesn't happen again, writes Reuters Editor-in-Chief David Schlesinger in The Guardian. Full Article Reuters Editors © 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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