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South Korea Naval Vessel Sunk; Cause Remains Unclear (Update2)
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By Sangim Han and Bomi Lim
March 27 (Bloomberg) -- A South Korean naval vessel sank off Baengnyeong island in the Yellow Sea, near the border with North Korea, an official in the office of President Lee Myung Bak said. The cause was unclear, he said.
About 50 crew members were still being searched for, with 58 rescued, said the official, who declined to be identified in accord with government policy. President Lee convened a meeting of security officials to discuss the incident, said the official, giving no further details.
The ship, which was on patrol, started sinking about 9 p.m. Friday night because of a hole in its stern, the cause of which was unclear, the official said.
A Defense Ministry spokesman in Seoul also said the cause of the hole wasn’t clear.
South Korea’s navy fired a warning shot toward the north at objects that appeared on radar, the presidential official said. The objects may have been a group of birds, the official said, in response to earlier reports that the navy had fired at an unidentified ship.
In Washington, Pentagon spokesman Lieutenant Colonel Mark Wright said, “We have not been asked for any assistance at this time by the Republic of Korea.” Wright declined to comment when asked if the alert status of the 28,500 U.S. troops in South Korea had been elevated.
Another Pentagon spokesman, Bryan Whitman said “we are aware of the reports and monitoring the situation.”
U.S. Stocks
News of the sinking helped push up the price of U.S. two- year Treasuries and of gold as investors sought assets perceived to be safer. Stocks in New York erased an early advance, though the S&P 500 Index then began to climb again.
“We had an oversold condition and when the Korea news hit the desks, gold took off,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.
The Standard & Poor’s 500 Index increased 0.1 percent to 1,167.21 at 2:33 p.m. in New York. The gauge had rallied as much as 0.7 percent in morning trading before turning lower when word of the South Korean ship’s sinking began to spread.
South Korea and North Korea remain technically at war since their 1950-53 conflict ended in a cease-fire, which was never replaced by a peace treaty. North Korea wants talks on signing a treaty to begin before it returns to six-nation discussions on ending its nuclear weapons program.
To contact the reporter on this story: Sangim Han in Seoul at [email protected]
Last Updated: March 26, 2010 14:53 EDT
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Sangim Han and Bomi Lim
March 27 (Bloomberg) -- A South Korean naval vessel sank off Baengnyeong island in the Yellow Sea, near the border with North Korea, an official in the office of President Lee Myung Bak said. The cause was unclear, he said.
About 50 crew members were still being searched for, with 58 rescued, said the official, who declined to be identified in accord with government policy. President Lee convened a meeting of security officials to discuss the incident, said the official, giving no further details.
The ship, which was on patrol, started sinking about 9 p.m. Friday night because of a hole in its stern, the cause of which was unclear, the official said.
A Defense Ministry spokesman in Seoul also said the cause of the hole wasn’t clear.
South Korea’s navy fired a warning shot toward the north at objects that appeared on radar, the presidential official said. The objects may have been a group of birds, the official said, in response to earlier reports that the navy had fired at an unidentified ship.
In Washington, Pentagon spokesman Lieutenant Colonel Mark Wright said, “We have not been asked for any assistance at this time by the Republic of Korea.” Wright declined to comment when asked if the alert status of the 28,500 U.S. troops in South Korea had been elevated.
Another Pentagon spokesman, Bryan Whitman said “we are aware of the reports and monitoring the situation.”
U.S. Stocks
News of the sinking helped push up the price of U.S. two- year Treasuries and of gold as investors sought assets perceived to be safer. Stocks in New York erased an early advance, though the S&P 500 Index then began to climb again.
“We had an oversold condition and when the Korea news hit the desks, gold took off,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.
The Standard & Poor’s 500 Index increased 0.1 percent to 1,167.21 at 2:33 p.m. in New York. The gauge had rallied as much as 0.7 percent in morning trading before turning lower when word of the South Korean ship’s sinking began to spread.
South Korea and North Korea remain technically at war since their 1950-53 conflict ended in a cease-fire, which was never replaced by a peace treaty. North Korea wants talks on signing a treaty to begin before it returns to six-nation discussions on ending its nuclear weapons program.
To contact the reporter on this story: Sangim Han in Seoul at [email protected]
Last Updated: March 26, 2010 14:53 EDT