In a protest against allegations that they torpedoed one of the South’s warships, North Korea will be severing all ties with South Korea. This drastic move includes expelling all of South Korean personnel from a jointly-run industrial factory north of the border, and prohibiting South Korean ships and planes from its territorial waters and airspace.
The State Committee for the Peaceful Reunification of Korea said South Korea's claims that it had sunk the warship were tantamount to a declaration of war. Accusations of Seoul’s puppet army gangs trespassing Northern waters have been made, stating that the North would “put into force practical military measures to defend its waters” if this provocation continued.
Amid the heightening tension, Seoul announced on Sunday it was ending trade relations with the North in response to the sinking of the Cheonan. They will also drop propaganda leaflets into the North to tell people about the sinking, in addition to setting up large electronic billboards to flash messages.
The two Koreas are technically still at war after the Korean conflict ended without an armistice in 1953.
North Korea ‘Severs All Ties’ with Seoul [BBC News, 25 May 2010]
North Korea to Sever All Ties with South Korea [ChannelNewsAsia, 25 May 2010]