South Korea Freezes Trade with North

Some movement. 

South Korea has suspended trade with the North and demanded an apology, after a report blamed Pyongyang for sinking a Southern warship.

President Lee Myung-bak said those who carried out the attack, which killed 46 sailors, must be punished.

North Korea’s main newspaper called the investigation an “intolerable, grave provocation”.

The White House endorsed the South’s move, and pledged its co-operation “to deter future aggression”.

Meanwhile, US Secretary of State Hillary Clinton has urged China to co-operate with the US on North Korea.

Mrs Clinton told a US-China summit in Beijing that Pyongyang must be held to account for the attack on the Cheonan.

“We ask North Korea to stop its provocative behaviour… and comply with international law,” she added.

China is North Korea’s closest trading partner and has in the past been reluctant to take tough measures against the communist state.

The North depends on South Korea and China for up to 80% of its external trade and 35% of its GDP. In 2009, inter-Korean trade stood at $1.68bn (£1.11bn) - 13% of the North’s GDP.