http://www.mysinchew.com/node/38114excerpt
SEOUL, April 23 (AFP) - North Korea seized South Korean-owned assets at a mountain resort Friday, warning that the two countries were on the brink of war over the sinking of a warship on their disputed border.
The communist state also declared that highly symbolic cross-border tours to the scenic Mount Kumgang resort had been halted for good, accusing South Korean President Lee Myung-Bak of pursuing "confrontation" with the North.
The action comes amid high tension over the sinking of a South Korean warship last month that left 46 sailors dead.
"The situation has reached such extreme phase that it is at the crossroads of a war or peace, much less thinking of the resumption of the tour," a North Korean state agency said.
"It is quite natural that we can no longer show generosity and tolerance to the south side under this situation."
North Korea last week expelled staff and sealed five buildings owned by the Seoul government at the Kumgang resort in protest at Seoul's refusal to restart cross-border tours.
It said Friday it was seizing the five buildings while freezing "all the remaining real estates" at the resort and expelling all their management personnel.
The move came hard on the heels of a report by the South's Yonhap news agency Thursday which quoted a senior military source as saying it was suspected that North Korean submarines attacked the ship with a heavy torpedo.
Pyongyang, which has denied responsibility, accused Seoul of linking it to the blast "deliberately", describing Lee as a "traitor".
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