South Korea conducts naval drill as tensions with North escalate

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South Korean navy has conducted a major anti-submarine drill as tensions with North Korea escalate.

Just hours after the drill, North Korea announced it will scrap an agreement aimed at preventing accidental naval clashes with the South.

The move is in retaliation for Seoul blaming Pyongyang for a torpedo attack that sank the Cheonan in March.

The South Korean exercise is one of the first visible signs of a raising of South Korea's defence posture in response to the incident.

READ MORE: North Korea scraps S Korea pact

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