Tell-It-Like-It-Is: S Korea freezes trade with North over warship sinking

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 on the Cheonan, which killed 46 sailors, must be punished.
He also announced that Northern ships would be banned from Southern waters.
The White House endorsed the move, and pledged its co-operation "to deter future aggression".

ANALYSIS

The measures South Korea has taken draw a line, once and for all, under the more optimistic era of growing trade and engagement between the two Koreas.
In his live television address, President Lee Myung-bak warned of a danger of complacency.
In addition, South Korea says it will resume "psychological operations" against the North, a reference to the radio and loudspeaker broadcasts that were suspended in 2004, and meet any further attack with an immediate military response.
It may also try to use the referral to the UN Security Council to push for a toughening of sanctions, a move that would infuriate the North.

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.
In a strongly worded televised address, Mr Lee said that the South was forgetting that it shared a border "with one of the most war-mongering nations on Earth".
He added that South Korea would refer the North to the UN Security Council in response to the sinking of the Cheonan.
The BBC's John Sudworth in Seoul says the measures are probably about as tough a response as the South could take, short of military action.
'Fabrication' The measures came less than a week after experts from the US, the UK, Australia and Sweden said in a report that a torpedo had hit the ship.

ATTACKS BLAMED ON NORTH

Jan 1967 - South Korean warship attacked near border, 39 sailors killed
Jan 1968 - presidential palace in Seoul stormed, 71 killed
Oct 1983 - Rangoon hotel used by South Korean president bombed, 21 killed
Nov 1987 - South Korean airliner bombed, 115 killed
Mar 2010 - Cheonan warship attacked, 46 sailors killed

How the ship was sunk Timeline: North Korean attacks Q&A: Cheonan sinking

They reported that parts of the torpedo retrieved from the sea floor had lettering that matched a North Korean design.
North Korea denies any involvement in the sinking, calling the investigation results a "fabrication" and threatening war if sanctions are imposed.
The US has said North Korea must face international consequences over the incident.
Mr Lee steered clear of urging military action, adding that South Korea's ultimate goal was not military confrontation.
But he said that the South would invoke the right to defend itself if the North took aggressive action in future.
Other measures to be announced are expected to include staging anti-submarine drills with the US close to the maritime border.