Seoul will sever just under half of its trade with Pyongyang and close its waters to North Korean vessels to punish the hermit kingdom for sinking a South Korean warship in March and killing 46 sailors.
“The North sank the Cheonan, taking the precious lives of our young sailors. Under these circumstances, any inter-Korean trade or co-operative activity is meaningless,” South Korean president Lee Myung-bak said in a televised address on Monday.
Pyongyang could counter the move by closing its airspace to international flights, adding fuel costs to major US and South Korean airlines, political analysts said.
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