Prime Minister Han Seung-soo said he was hopeful of dialogue with North Korea following the North's decision to scrap all accords with the South.
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North Korea's KCNA news agency quoted the Committee for the Peaceful Reunification of Korea as saying that inter-Korean relations 'have reached the brink of war'.
Speaking at the World Economic Forum in the Swiss resort of Davos, the South Korean premier said that we was not surprised, but called for dialogue rather than threats.
Han said that the inauguration of President Obama may have had some influence. Some analysts say the sabre-rattling is more aimed at jolting Obama into taking notice of Pyongyang which has for years used the threat of nuclear weapons to extract concessions from Washington.
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