North Korea warned of an �all-out military strike� to destroy South Korean loudspeakers and other propaganda tools along their fortified border, according to the North�s state-run Korean Central News Agency.

South Korea�s preparation for psychological warfare, is a �direct declaration of a war� against the North, the general staff of the communist state�s military said today in a statement on KCNA. The North�s military retaliation may turn Seoul into �a sea of flame,� the statement said.

The South has already installed loudspeakers in 11 places along the border and is attempting to set up electronic displays, according to the statement.

South Korea hasn�t detected any abnormal activities near the border area with the North, Yonhap News said following the KCNA report today, citing South Korea�s Joint Chiefs of Staff.

Tensions have risen on the Korean peninsula since an international panel concluded on May 20 that the North was behind a torpedo attack that sank the Cheonan warship, killing 46 of the South�s sailors. South Korea�s president Lee Myung Bak has taken the case to the United Nations Security Council, backed by the U.S. and Japan, to seek a resolution condemning North Korea.

The North says the allegations are fabricated and has threatened to retaliate over any punitive action taken against it.

South Korea will resume anti-North broadcasts across the border after the United Nations Security Council makes a determination about the sinking, Yonhap News reported yesterday, citing South Korea�s defense minister.

(Source: Bloomberg)