Factbox: South Korea punishment of North for ship sinking

SEOUL (BestGrowthStock) – South Korea said on Monday it would punish the North after investigators last week blamed the reclusive state for the sinking of one of its navy ships, killing 46 sailors.

The following are some of the steps that the South has said it would take to hold the North accountable, and what Pyongyang has threatened to do in return.

CUTTING OFF TRADE AND AID

– South Korea will ban all trade of goods. South Korean data showed a large part of trade was in farm and fisheries products, worth $286 million at its peak in 2008. The ban does not include shipments of goods to and from the Kaesong industrial park just north of the border where South Korean firms use cheap local labor and land to make consumer goods. Kaesong was once regarded as a symbol of economic cooperation between the two rivals.

– South Korea bans all travel to the North by its citizens except to Kaesong. The number of its workers in Kaesong will be reduced sharply.

– No new investment in North Korea will be allowed.

– Humanitarian aid will be suspended except assistance intended for children.

– South Korea will stop allowing North Korean vessels to sail through the Jeju Strait between the country’s south and an island off its coast, which is a cheaper route for the North’s ships. South Korea’s defense minister said there was suspicion such ships could be used for espionage.

TOUGHER MILITARY

– The South will resume broadcasting anti-North propaganda messages through loudspeakers set up along the border aimed at unsettling the North’s impoverished military. North Korea responded sensitively to the broadcasts before they were suspended six years ago, concerned about morale in its military.

– South Korea said it would take an active role in the U.S.-led Proliferation Security Initiative (PSI) aimed at intercepting shipments of suspected nuclear and missile material. The South’s involvement has previously been as an observer.

– South to begin anti-submarine drills jointly with the U.S. military off the peninsula’s west coast. Seoul believes a North Korean submarine infiltrated its waters in March and fired a torpedo, sinking its corvette the Cheonan.

INTERNATIONAL SANCTIONS

– South Korea to discuss with U.N. Security Council members on measures to punish the North for the sinking. Foreign Minister Yu Myung-hwan said a full range of options would be considered.

– Tougher enforcement of existing sanctions imposed for missile and nuclear tests, which have already left the North’s destitute economy short of cash. Its lucrative arms trade has been hit hardest.

Stock Today

(Reporting by Jack Kim, editing by Jonathan Thatcher)

Factbox: South Korea punishment of North for ship sinking