South Korea freezes North Korea money ahead of Cheonan warship sinking report

[IScreamSundays]

Source: Christian Science Monitor

South Korea said Monday it was freezing government funds for North Korea, just days before the findings of an international investigation into the sinking of the Cheonan warship are scheduled for release.

Tensions have been high since the Cheonan was torn in half by an unexplained explosion and sank on March 26, killing 46 South Korean sailors. It is widely suspected that the explosion came from a North Korean torpedo, but the South has avoided directly accusing the North, saying it will wait until the results of the investigation are announced.

But South Korea's decision to scale back contact with North Korea may be a sign that it is preparing for the probe’s findings, which will be released by Thursday. The South suspended funding for government-level exchanges with North Korea at 10 ministries. Seoul has already asked South Korean companies not to ink new deals with Pyongyang or send resources across the border, reports Agence France-Presse.

Relations between the two sides have worsened since the sinking. South Korea on Saturday fired warning shots at North Korean naval boats in Southern waters, and the North on Sunday threatened to stop South Koreans from crossing into the North. The North last month barred access to South Korean assets at a jointly-run mountain resort.

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Read more: http://www.csmonitor.com/World/terrorism-security/2010/0517/South-Korea-freezes-North-Korea-money-ahead-of-Cheonan-warship-sinking-report