Trump to press South Korea leader on trade as North Korea looms

U.S. President Donald Trump welcomes South Korean President Moon Jae-in to the White House in Washington, U.S., June 29, 2017. REUTERS/Carlos Barria

By Jeff Mason and David Brunnstrom

WASHINGTON (Reuters) – U.S. President Donald Trump will press South Korean President Moon Jae-in to solve trade differences over cars and steel in meetings in Washington focusing on the nuclear threat from North Korea.

Concerns about the U.S. military’s THAAD missile defense system and China’s role in the region also are likely to come up in talks between Trump and Moon at the White House.

Moon, making his first trip to the United States since becoming his country’s president in May, joined Trump and his wife, Melania, for dinner in the White House State Dining Room on Thursday evening ahead of further talks on Friday.

“I know you’ve been discussing with our people some of the complexities of North Korea and trade and other things, and we’ll be discussing them all as we progress, and it could be very well late into the evening,” Trump told Moon.

“I’d like to also congratulate you upon your election victory. It was a great victory, and you did a fantastic job. A lot of people didn’t expect that, and I did expect it. I thought that was going to happen.”

Both men have an interest in building a strong relationship but tensions could puncture that effort.

Trump has spoken harshly about U.S. trade imbalances with South Korea and threatened to tear up a trade agreement with the country. Moon has taken a wary stance on the Terminal High Altitude Area Defense (THAAD) system that the United States deployed in South Korea in March.

“I think they’ll have a friendly and frank discussion about the trade relationship,” a White House official told reporters on Wednesday, noting concerns about barriers to U.S. auto sales and surplus Chinese steel that arrives in the United States via South Korea.

After the dinner, Trump tweeted that he had a “very good meeting” with Moon and that “many subjects (were) discussed including North Korea and new trade deal!”

The U.S. goods trade deficit with South Korea has more than doubled since the KORUS pact took effect in 2012, from $13.2 billion in 2011 to $27.7 billion in 2016. It was forecast to boost U.S. exports by $10 billion a year but they were $3 billion lower in 2016 than in 2011.

In an interview with Reuters in April, Trump called the 5-year-old trade deal “horrible” and said he would either renegotiate or terminate it.

During remarks at the U.S. Chamber of Commerce on Wednesday, Moon said unfair trade practices would be eradicated and factors that limited competition, such as market entry barriers and price regulations, would be re-evaluated under his administration.

Trump has made challenging trade agreements a hallmark of his administration since taking office in January.

NORTH KOREA FOCUS

Despite tensions over that issue, his meetings with Moon are likely to focus largely on North Korea.

Moon has said he wants to form a friendship with the former New York businessman and find common ground on how to resolve the crisis over North Korea’s nuclear and missile programs.

Trump wants to build ties with an important new leader in the region as he grows frustrated that his relationship with Chinese President Xi Jinping has not resulted in stronger action by Beijing to rein in Pyongyang.

The United States on Thursday imposed sanctions on two Chinese citizens and a shipping company for helping North Korea’s nuclear and missile programs and accused a Chinese bank of laundering money for Pyongyang.

The Trump administration also announced it plans to sell Taiwan about $1.42 billion in arms.

Moon told Reuters in an interview last week he wanted to discuss a two-phased approach to resolving the North Korean nuclear issue, starting with a freeze on North Korea’s nuclear and missile development followed by complete dismantlement.

“I am planning to have frank and open discussions with President Trump on the step-by-step approach,” he said.

The THAAD defense system could be a sticking point.

Moon, who has advocated a more moderate approach toward Pyongyang, expressed shock late last month upon learning that four more launchers for the controversial system had been brought into the country. He ordered an investigation after his Defense Ministry failed to inform him of the move.

The system, whose installation irritated China, is meant to counter the threat from North Korea’s missile program. The White House said it did not expect THAAD to be a major point of conversation and Moon is expected to assure Washington that his recent decision to postpone full THAAD deployment to conduct an environmental review was a measure to follow domestic law.

Despite potential areas of disagreement, the two leaders are expected to express common resolve over threats from North Korea.

“The similarities in our approaches are already evident,” the White House official said, noting that both men had expressed willingness to engage with Pyongyang under the right conditions. “Even once the conditions may present themselves, to enter into dialogue we must maintain and actually increase pressure on North Korea. That’s President Moon’s approach; it’s President Trump’s approach.”

(additional reporting by James Oliphant; Editing by Bill Trott and Tom Brown)

North Korea calls for execution of ex-South Korea leader over ‘assassination’ plot

South Korean ousted leader Park Geun-hye arrives at a court in Seoul, South Korea, May 23, 2017. REUTERS/Kim Hong-Ji

By Jack Kim

SEOUL (Reuters) – North Korea said on Wednesday it has issued a standing order for the execution of former South Korean President Park Geun-hye and her spy chief for what it said was a plot to assassinate its leader, and it demanded that the South hand the pair over.

The North’s official KCNA said “revelation showed” Park had masterminded a plot to execute its “supreme leadership” in 2015 and it was imposing the “death penalty on traitor Park Geun-hye” and her spy chief, Lee Byung-ho.

KCNA did not disclose the source of the “revelation,” but a Japanese newspaper reported this week that Park in 2015 approved a plan to overturn the North Korean regime of leader Kim Jong Un.

Park was ousted in March over a corruption scandal and is in detention in South Korea while on trial.

South Korea’s National Intelligence Agency (NIS) said it was “unpardonable” that North Korea made threats against its citizens and said the news report of a plot to kill Kim Jong Un “had no grounds.”

Japan’s Asahi Shimbun newspaper reported on Monday, citing sources familiar with Park’s North Korea policy, that Park had signed off on a plot to remove the North’s leader in 2015 and the plan was orchestrated by the South’s spy agency.

“We declare at home and abroad that we will impose the death penalty on traitor Park Geun-hye and ex-director of the puppet intelligence service … criminals of hideous state-sponsored terrorism who hatched and pressed for the heinous plot to hurt the supreme leadership of the DPRK,” KCNA said.

DPRK stands for the Democratic People’s Republic of Korea, the North’s official name.

“We declare that in case the U.S. and the South Korean puppet forces again attempt at hideous state-sponsored terrorism targeting the supreme leadership … we will impose summary punishment without advance notice,” KCNA said.

KCNA said the statement was issued jointly by the North’s Ministry of State Security, the Ministry of People’s Security and the Central Public Prosecutors Office.

North and South Korea are technically in a state of war under a truce that ended the 1950-53 Korean War, and the North routinely warns of annihilating the South Korean government.

North Korean government agencies often issue harsh rhetoric in state media over perceived insults, or what they see as threats to the security of their leaders. The trend has intensified under Kim Jong Un.

In May, North Korea accused the U.S. Central Intelligence Agency and the South’s spy agency of another plot to assassinate its “supreme leadership” with biochemical weapon.

At that time, it also demanded the handover of former NIS chief Lee.

(Editing by Robert Birsel and Leslie Adler)

Exclusive: South Korea president calls on China’s Xi to do more on North Korea nuclear program

South Korean President Moon Jae-in attends an interview with Reuters at the Presidential Blue House in Seoul, South Korea, June 22, 2017. REUTERS/Kim Hong-Ji

By Jean Yoon and Soyoung Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Thursday China should do more to rein in North Korea’s nuclear program and he would call on President Xi Jinping to lift measures against South Korean companies taken in retaliation against Seoul’s decision to host a U.S. anti-missile defense system.

In an interview with Reuters ahead of his trip to Washington next week for a summit with U.S. President Donald Trump, Moon said ‘strong’ sanctions should be imposed if North Korea tests an intercontinental ballistic missile (ICBM) or conducts a sixth nuclear test.

“It must be sufficiently strong enough that it would prevent North Korea from making any additional provocations, and also strong enough that it will make North Korea realize that they are going down the wrong path,” Moon said.

The comments mark the toughest warning yet by the liberal former human rights lawyer, who was elected in May after campaigning for a more moderate approach to the North and engaging the reclusive country in dialogue. As a candidate, he said, sanctions alone have failed to impede Pyongyang’s defiant pursuit of nuclear weapons and ballistic missiles.

North Korea will acquire the technology to deploy a nuclear-tipped ballistic missile capable of hitting the mainland United States “in the not too distant future,” Moon said.

EXERT MORE PRESSURE

“I believe China is making efforts to stop North Korea from making additional provocations, yet there are no tangible results as of yet,” Moon told Reuters at the sprawling Blue House presidential compound.

“China is North Korea’s only ally and China is the country that provides the most economic assistance to North Korea,” Moon said. “Without the assistance of China, sanctions won’t be effective at all.”

Moon’s remarks echoed that of U.S. President Donald Trump, who said in a tweet on Tuesday Chinese efforts to persuade North Korea to rein in its nuclear program have failed. Top U.S. officials pressed China on Wednesday to exert more economic and diplomatic pressure on North Korea-level in talks with their counterparts in Washington on Wednesday.

“Maybe President Trump believes that there is more room for China to engage North Korea and it seems that he is urging China to do more. I can also sympathize with that message,” Moon said.

China accounts for 90 percent of world trade with North Korea. Diplomats say Beijing has not been fully enforcing existing international sanctions on its neighbor, and has resisted tougher measures, such as an oil embargo and bans on the North Korean airline and guest workers.

Washington has considered imposing “secondary sanctions” against Chinese banks and other firms doing business with North Korea.

G20 MEETING

South Korea and the United States agreed to deploy the Terminal High Altitude Area Defense (THAAD) system in response to the growing missile threat from North Korea.

But the move has angered China, which says the system’s powerful radar will look deep into its territory and undermine regional security. China has pressured South Korean businesses via boycotts and bans, such as ending Chinese group tours to South Korea and closing most of South Korean conglomerate Lotte Group’s Lotte Mart retail stores in China.

Lotte handed over a golf course it owned in southern South Korea so the THAAD battery could be installed there.

Moon said that while China has never officially acknowledged economic retaliation, many South Korean businesses face difficulties in China, and he hopes to hold talks with Xi at the G20 summit in Hamburg, Germany next month to address the issue.

“If I have the chance to meet President Xi, I will ask for him to lift these measures. This is the agenda that we cannot evade,” Moon said.

“If we were to link political and military issues to economic and cultural exchanges, this could lead to some hindrance to the development of our friendly relationship between our two countries.”

Moon said he wants to sit down with as many world leaders as possible in Hamburg — including Xi, Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin — where he expects the North’s nuclear program will top the agenda.

THAAD MYSTERIOUSLY ACCELERATED

Moon, who pledged to review the controversial decision to deploy THAAD during his election campaign and delayed full deployment of the system this month to review how the system will affect the area’s environment, said it was important to ensure domestic law and regulations are properly enforced.

“But for some reason that I do not know, this entire THAAD process was accelerated.”

In the first disclosure of the details of the schedule of the THAAD deployment agreed by the two countries last year, Moon said the original agreement was to deploy one launcher by the end of 2017 and the remaining five launchers next year.

In a surprise pre-dawn operation, the U.S. military moved two launchers into the deployment site in late April just days before the election. In addition, four more launchers had been brought into the country, which Moon called “very shocking.”

JAPAN’S WARTIME PAST

Japan is an important partner in the effort to resolve the North Korean crisis but Tokyo’s refusal to fully own up to its wartime past, its claims to the disputed islands between the two countries as well as its growing military spending are concerning, Moon said.

“If Japan were to show its strong resolve in looking back on its past history and sending a message that such actions will never happen again… then I believe that this will go a long way in further developing its relations with not only Korea but also with many other Asian nations,” he said.

Moon has said many South Koreans did not accept a deal reached by his conservative predecessor and Japan’s Abe in 2015 to resolve the issue of Korean “comfort women” — a euphemism for women forced to work in the Japanese military’s wartime brothels.

“Japan does not make full efforts to resolve issues of history between our two countries, including the comfort women issue,” Moon said.

Moon said he has “high expectations” for the upcoming summit with Trump next week and said the priority the two leaders have placed on North Korea has raised the possibility the nuclear issue will be resolved.

“I’m very glad that President Trump has made the resolution of North Korea’s nuclear issue as top of his priority list on his foreign affairs agenda.”

(Additional reporting by Jack Kim, Christine Kim, Heekyong Yang and Haejin Choi in Seoul; Editing by Bill Tarrant)

Suspected North Korea drone spied on U.S. anti-missile system: South Korea officials

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

SEOUL (Reuters) – A suspected North Korean drone had taken photographs of an advanced U.S. anti-missile battery in South Korea before it crashed on its way home, the South Korean military said on Tuesday.

The drone, mounted with a camera, was found last week in a forest near the border with North Korea. It was similar in size and shape to a North Korean drone found in 2014 on an island near the border.

“We confirmed that it took about 10 photos,” of the anti-missile system, known as the Terminal High Altitude Area Defense (THAAD), a South Korean Defense Ministry official said by telephone.

The drone was suspected to be from North Korea, the official added.

South Korea is hosting the anti-missile defense system in the Seongju region, about 250 km (155 miles) from the border with North Korea, to counter a growing missile threat from the North.

“We will come up with measures to deal with North Korean drones,” said an official at South Korea’s Office of the Joint Chiefs of Staff, who also declined to be identified as he is not authorized to speak to the media.

North Korean drones are known to have flown over South Korea several times.

North Korea has about 300 unmanned aerial vehicles of different types including one designed for reconnaissance as well as combat drones, the United Nations said in a report last year.

The North Korean drones recovered in South Korea were probably procured through front companies in China, with parts manufactured in China, the Czech Republic, Japan and the United States, it added.

The neighbors are technically at war after the 1950-53 Korean War ended in a truce and not a peace treaty.

South Korea and the United States agreed last year to deploy the THAAD unit in response to North Korea’s relentless development of its ballistic missiles, and nuclear weapons, in defiance of U.N. sanctions.

China strongly objects to the THAAD system saying its powerful radar can probe deep into its territory, undermining its security and upsetting a regional balance. China also says the system does nothing to deter North Korea.

South Korea and the United States say the system is aimed solely at defending against North Korean missiles.

(Reporting by Yuna Park; Editing by Kim Coghill, Robert Birsel)

South Korea does not aim to change U.S. missile defense deal: security adviser

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor (R) is seen in Seongju, South Korea, April 26, 2017. Lee Jong-hyeon/News1 via REUTERS

By Christine Kim and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – South Korea does not aim to change its agreement on the deployment of a U.S. anti-missile system to protect against North Korea, in spite of a decision to delay its full installation, Seoul’s top national security adviser said on Friday.

Chung Eui-yong called the decision to delay installation of remaining launchers of the Terminal High Altitude Area Defense (THAAD) system, pending a review of its environmental impact, a domestic measure to ensure a democratic process.

“The decision to introduce THAAD was made to protect South Korea and the U.S. forces in South Korea from a growing threat from the North. We won’t take this decision lightly,” Chung told a news briefing.

He said South Korea would discuss ways to strengthen the joint defense against North Korea’s weapons programs during a summit between new South Korean President Moon Jae-in and U.S. President Donald Trump in late June.

Two launchers of a full six-launcher THAAD battery, as well as the system’s far-reaching radar, which China worries could upset the regional security balance, have already been installed on an old golf course in South Korea’s southeastern city of Seongju.

Moon’s office said on Wednesday that deployment of the four remaining launchers would be halted for the environmental assessment, which may take well over a year, according to a senior administration official.

Moon vowed in his election campaign to review the decision to deploy THAAD, which was made by his conservative predecessor, Park Geun-hye, greatly angering South Korea’s neighbor China, an important trading partner, and some domestic critics.

U.S. officials have sought to play down the impact on relations with South Korea, a long-time treaty ally where more than 28,000 troops are based, although a Pentagon spokesman made clear it would like to see the full battery installed.

“We believe considering the threat from North Korea, a full THAAD battery is the best addition to the defense of (South Korea),” Commander Gary Ross said.

A senior official of the U.S. administration told Reuters that U.S. diplomats had sought clarification from South Korean officials as to whether the environmental review was a prelude for a rejection of the whole THAAD system, and were assured that South Korea planned to uphold its end of the agreement.

The issue was discussed by Trump, U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson at a White House meeting on Thursday.

A State Department spokeswoman, Katina Adams, said the decision to deploy THAAD was an essential response to North Korea’s fast-developing nuclear and missiles programs, which has seen dozens of launches and two bomb tests since the start of last year.

“Each launch … further demonstrates the rationale and necessity of the U.S.-(South Korea) Alliance agreement to deploy THAAD,” she said.

The State Department said U.S. Under Secretary of State Thomas Shannon would visit Seoul from Tuesday to Thursday next week after a stop in Tokyo on Monday to discuss responses to North Korea.

North Korean leader Kim Jong Un has spoken of his aim to develop an intercontinental ballistic missile capable of hitting the mainland United States with a nuclear weapon, presenting Trump with perhaps his most pressing security problem and underscoring the need for close cooperation with Seoul.

Nevertheless, Trump, who campaigned on a populist “America First” platform, risked increased tensions with the U.S. ally when he told Reuters in an interview just before Moon’s election he would either renegotiate or terminate a “horrible” free trade deal with South Korea and said Seoul should pay for THAAD, which he priced at $1 billion.

(Reporting by Christine Kim and Soyoung Kim in Seoul and David Brunnstrom and Steve Holland in Washington; Editing by Robert Birsel and James Dalgleish)

South Korea finds apparent North Korean drone near border

A small aircraft what South Korea's Military said is believed to be a North Korean drone, is seen at a mountain near the demilitarised zone separating the two Koreas in Inje, South Korea in this handout picture provided by the Defence Ministry and released by News1 on June 9, 2017. The Defence Ministry/News1 via REUTERS

By Ju-min Park

SEOUL (Reuters) – South Korea has found what appears to be a North Korean drone equipped with a camera on a mountain near its border with the isolated nation, the South’s military said on Friday, suggesting the device was on a spying mission.

Its appearance a day after Pyongyang tested a new type of anti-ship missile on Thursday, could spark questions about the state of South Korea’s air defenses at a time when Seoul is trying to rein in the North’s nuclear and missile programs.

In size and shape, the device looked like a North Korean drone found in 2014 on an island near the border, South Korea’s Office of Joint Chiefs of Staff said in a statement, adding that authorities plan to conduct a close analysis.

“The drone found this time looks sloppy but slightly more slender than previous ones,” a South Korean military official told Reuters on condition of anonymity, because he was not authorized to speak to the media.

The device would be the latest of several North Korean drones to have flown into the South, with which Pyongyang is technically at war after the Korean war ended in a truce, rather than a peace treaty, in 1953.

In 2014, South Korea said three unmanned drones from North Korea were found in border towns.

A joint investigation by South Korean and U.S. militaries has concluded the craft were on reconnaissance missions for the North, which has denied sending spy drones, however, dismissing the findings as a fabrication.

Last year, South Korea fired warning shots at a suspected North Korean drone, forcing it to turn back.

North Korea owns around 300 unmanned aerial vehicles of different types including reconnaissance, target and combat drones, the United Nations said in a report last year.

The North Korean drones recovered in South Korea were probably procured through front companies in China, with parts manufactured in China, the Czech Republic, Japan and the United States, it added.

(Reporting by Ju-min Park; Editing by Soyoung Kim and Clarence Fernandez)

North Korea fires suspected land-to-ship missiles as South Korea delays THAAD

A South Korean soldier walks past a TV broadcast of a news report on North Korea firing what appeared to be several land-to-ship missiles off its east coast, at a railway station in Seoul, South Korea, June 8, 2017. REUTERS/Kim Hong-Ji

By Ju-min Park and Soyoung Kim

SEOUL (Reuters) – North Korea fired what appeared to be several land-to-ship missiles off its east coast on Thursday, South Korea’s military said, a day after the South postponed full deployment of a controversial U.S. anti-missile system designed to deter a North Korean attack.

The launches, the latest in a fast-paced series of missile tests defying world pressure to rein in its weapons program, come less than a week after the United Nations Security Council passed fresh sanctions on the reclusive state.

South Korea on Wednesday said it will hold off on installing remaining components of the U.S. Terminal High Altitude Area Defense (THAAD) system that has angered North Korea’s main ally, China, amid early signs of easing tensions between the two countries.

The missiles were launched Thursday morning from the North Korean coastal city of Wonsan and flew about 200 km (124 miles), South Korea’s Office of Joint Chiefs of Staff said in a statement.

Under third-generation leader Kim Jong Un, North Korea has been conducting missile tests at an unprecedented pace in an effort to develop an intercontinental ballistic missile (ICBM) capable of hitting the mainland United States.

Compared to the different types of ballistic missiles Pyongyang has recently tested, the missiles launched on Thursday are considered to be more defensive in nature, designed to defend against threats such as enemy warships.

North Korea unveiled a number of new weapons at a massive military parade on April 15 to mark the birth anniversary of the state’s founding leader and has since tested some of them.

“What appeared to be a new type of land-to-ship missile equipped with four launching canisters was unveiled at the parade,” said Kim Dong-yub, a military expert at Kyungnam University’s Far Eastern Studies in Seoul. “I think this might be what was used today.”

THAAD DEFENSE DELAYED

Thursday’s launch is the fourth missile test by North Korea since South Korean President Moon Jae-in took office on May 10 pledging to engage in dialogue with Pyongyang. Moon says sanctions and pressure alone have failed to resolve the growing threat from the North’s advancing nuclear and missile program.

Moon had also promised to review the deployment of the THAAD system in South Korea, a decision that was made by the government of his conservative predecessor, Park Geun-hye. On Wednesday, Moon’s office said installation of four additional launchers would be halted until an assessment of the system’s impact on the environment was completed.

Two launchers of the full six-launcher THAAD battery, as well as the system’s far-reaching radar that China worries could upset the regional security balance, have already been installed at a deployment site in the southeastern city of Seongju. The elements will stay in place, South Korea said.

The introduction of the THAAD system has sparked protests in South Korea and a backlash in China against South Korean business interests.

The Global Times, published by China’s official People’s Daily, said in an editorial that no matter the outcome of the environmental study, South Korea’s announcement could reduce friction.

“Obviously, the pressure China puts on South Korea has taken effect. Seoul’s will has been shaken,” the paper said. “However, attitude is not everything. Without solving the problem of THAAD, the pain it has brought to bilateral relations will not disappear, and South Korea must swallow some of the bitter results.”

China should work with Russia on counter-measures to THAAD, the Global Times added.

Asked about the latest missile test, Chinese Foreign Ministry spokeswoman Hua Chunying called for all parties to exercise restraint.

“The UN Security Council resolution has clear rules on (North Korea’s) use of ballistic missiles technologies,” she said. “All sides should work together to de-escalate tensions and take active steps to stabilize the region.”

U.S. President Donald Trump has been pressing China aggressively to rein in North Korea, warning that all options, including a pre-emptive military strike, are on the table if Pyongyang persists with its nuclear and missile development.

Seoul, Tokyo and Washington were analyzing the launches for further information, officials said.

Japan’s navy and air force conducted military drills with two U.S. aircraft carriers in the Sea of Japan last week, following similar joint U.S.-South Korea exercises.

“North Korea likely wanted to show off its ability to precisely target a large warship, in relation to the joint military drills involving U.S. aircraft carriers,” Roh Jae-cheon, South Korea’s Joint Chiefs of Staff spokesman, told a media briefing.

“By testing different types of missiles, North Korea also appears to be aiming to secure the upper hand in relations with South Korea and the United States.”

The isolated country, which has conducted dozens of missile tests and tested two nuclear bombs since the beginning of 2016 in defiance of U.N. Security Council resolutions, says the program is necessary to counter U.S. aggression.

(Additional reporting by Christine Kim in SEOUL, and Christian Shepherd and Ben Blanchard in BEIJING; Editing by Lincoln Feast)

Putin says U.S. missile systems in Alaska, South Korea challenge Russia

Russian President Vladimir Putin speaks during a meeting with representatives of international news agencies in St. Petersburg, Russia, June 1, 2017.

By Denis Pinchuk and Andrew Osborn

ST PETERSBURG/MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday that elements of a U.S. anti-missile system in Alaska and South Korea were a challenge to Russia and that Moscow had no choice but to build up its own forces in response.

Putin, speaking at an economic forum in St Petersburg, said Russia could not stand idly by and watch while others increased their military capabilities along its borders in the Far East in the same way as he said had been done in Europe.

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei Karpukhin

He said Moscow was particularly alarmed by the deployment of the U.S. THAAD anti-missile system to South Korea to counter a North Korean missile threat and to reported U.S. plans to beef up Fort Greely in Alaska, a launch site for anti-ballistic missiles.

“This destroys the strategic balance in the world,” Putin told a meeting with international media, the start of which was broadcast on state TV.

“What is happening is a very serious and alarming process. In Alaska, and now in South Korea, elements of the anti-missile defence system are emerging. Should we just stand idly by and watch this? Of course not. We are thinking about how to respond to these challenges. This is a challenge for us.”

Washington was using North Korea as a pretext to expand its military infrastructure in Asia in the same way it had used Iran as a pretext to develop a missile shield in Europe, charged Putin.

RUSSIAN RESPONSE

Putin said the Kurile Islands, a chain of islands in the Far East where Moscow and Tokyo have rival territorial claims, were “quite a convenient place” to deploy Russian military hardware to respond to such threats.

Defence Minister Sergei Shoigu said last year Russia planned to deploy some of its newest missile defence systems and drones to the islands, part of a drive to rearm military units already stationed there. He has also spoken of Russia building a military base there.

“I don’t agree that we are unilaterally starting to militarize these islands,” said Putin. “It is simply a forced response to what is happening in the region.” Any talk of demilitarizing the islands could only occur once tensions in the entire region had been reduced, he said.

Tokyo and Moscow have long been locked in talks over the contested islands, known as the Northern Territories in Japan. Putin said Russia was alive to the danger that Japan might allow U.S. troops to deploy there if it struck a deal to hand over some of the islands to Tokyo’s jurisdiction.

“Such a possibility exists,” said Putin.

Russia did not want to worsen already poor relations with Washington by fueling what he described as an arms race, but Putin said the United States was still consumed by what he called an anti-Russian campaign.

“How will the situation develop? We don’t know,” said Putin.

(Additional reporting by Dmitry Solovyov and Maria Kiselyova; Writing by Andrew Osborn; Editing by Alexander Winning)

South Korea defense ministry ‘intentionally dropped’ THAAD units in report: Blue House

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

By Jack Kim

SEOUL (Reuters) – South Korea’s Defence Ministry “intentionally dropped” mentioning that four more launchers had been deployed for the controversial U.S. THAAD anti-missile system in a report to President Moon Jae-in’s top aides, his office said on Wednesday.

Moon has ordered a probe at the defense ministry, saying it was “very shocking” the launchers had been brought in without being reported to the new government or to the public, presidential Blue House spokesman Yoon Young-chan said on Tuesday.

The Defence Ministry intentionally omitted details about the Terminal High Altitude Area Defence (THAAD) system battery (THAAD) in a report last week, when the new government was preparing for Moon’s summit with U.S. President Donald Trump next month, Yoon told a briefing.

“The Blue House has confirmed that the Defence Ministry has intentionally dropped the introduction of four more launchers in its report,” Yoon said.

Moon took office on May 10 without a transition period because a snap presidential election was held just two months after his predecessor, Park Geun-hye, was ousted in a corruption scandal. Moon inherited his defense minister along with the rest of his cabinet from the previous administration.

The THAAD battery was initially deployed in March in the southeastern region of Seongju with just two of its maximum load of six launchers to counter a growing North Korean missile threat.

An earlier version of the defense ministry report specified the total number of launchers being prepared for deployment and the name of the U.S. military base where the four were being kept, but the reference was removed in the final version delivered to the Blue House, Yoon said.

The Pentagon said it had been “very transparent” with South Korea’s government about THAAD deployment.

US MISSILE DEFENSE TEST

During his successful presidential campaign, Moon called for a parliamentary review of the THAAD system, the deployment of which has infuriated China, North Korea’s lone major ally. Moon had also called for more engagement and dialogue with Pyongyang.

Asked about South Korea’s Defence Ministry dropping mention of the four additional launchers, Chinese Foreign Ministry spokeswoman Hua Chunying expressed “serious concern”, and reiterated a call for THAAD to be withdrawn.

North Korea has conducted three ballistic missile tests since Moon took office, maintaining its accelerated pace of missile and nuclear-related activities since the beginning of last year in defiance of U.N. sanctions.

In Washington, the U.S. military said on Tuesday it had staged a successful, first-ever missile defense test involving a simulated attack by an intercontinental ballistic missile.

“The intercept of a complex, threat-representative ICBM target is an incredible accomplishment … a critical milestone for this program,” Vice Admiral Jim Syring, the director of the Missile Defence Agency, said in a statement.

Moon’s order of a probe over the THAAD deployment came amid signs of easing tensions between South Korea and China, a major trading partner.

China had been incensed over the THAAD deployment, saying it would do little to deter the missile threat from North Korea while allowing the U.S. military to use its radar to look deep into its territory and at its own missile systems.

Japanese Prime Minister Shinzo Abe told China’s top diplomat on Wednesday that he would like to work with China to try to rein in North Korea’s nuclear and missile programs.

Beijing is also troubled by the possibility the THAAD system would open the door to a wider deployment the U.S. missile defense systems, possibly in Japan and elsewhere, military analysts say.

South Korean companies have faced product boycotts and bans on Chinese tourists visiting South Korea, although China has denied discriminating against them.

(Reporting by Jack Kim; Additional reporting by Phil Stewart in Washington, Ben Blanchard in Beijing and Kiyoshi Takenaka in Tokyo; Editing by Bill Tarrant)

North Korea warns of ‘bigger gift package’ for U.S. after latest test

FILE PHOTO: North Korean leader Kim Jong Un watches the test of a new-type anti-aircraft guided weapon system organised by the Academy of National Defence Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) May 28, 2017. KCNA/via REUTERS

By Ju-min Park and Jack Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un supervised the test of a new ballistic missile controlled by a precision guidance system and ordered the development of more powerful strategic weapons, the North’s official KCNA news agency reported on Tuesday.

The missile launched on Monday was equipped with an advanced automated pre-launch sequence compared with previous versions of the “Hwasong” rockets, North Korea’s name for its Scud-class missiles, KCNA said. That indicated the North had launched a modified Scud-class missile, as South Korea’s military has said.

The North’s test launch of a short-range ballistic missile landed in the sea off its east coast and was the latest in a fast-paced series of missile tests defying international pressure and threats of more sanctions.

Kim said the reclusive state would develop more powerful weapons in multiple phases in accordance with its timetable to defend North Korea against the United States.

“He expressed the conviction that it would make a greater leap forward in this spirit to send a bigger ‘gift package’ to the Yankees” in retaliation for American military provocation, KCNA quoted Kim as saying.

South Korea said it had conducted a joint drill with a U.S. supersonic B-1B Lancer bomber on Monday. North Korea’s state media earlier accused the United States of staging a drill to practise dropping nuclear bombs on the Korean peninsula.

The U.S. Navy said its aircraft carrier strike group, led by the USS Carl Vinson, also planned a drill with another U.S. nuclear carrier, the USS Ronald Reagan, in waters near the Korean peninsula.

A U.S. Navy spokesman in South Korea did not give specific timing for the strike group’s planned drill.

North Korea calls such drills a preparation for war.

Monday’s launch followed two successful tests of medium-to-long-range missiles in as many weeks by the North, which has been conducting such tests at an unprecedented pace in an effort to develop an intercontinental ballistic missile (ICBM) capable of hitting the mainland United States.

Such launches, and two nuclear tests since January 2016, have been conducted in defiance of U.S. pressure, U.N. resolutions and the threat of more sanctions.

They also pose one of the greatest security challenges for U.S. President Donald Trump, who portrayed the latest missile test as an affront to China.

“North Korea has shown great disrespect for their neighbor, China, by shooting off yet another ballistic missile … but China is trying hard!” Trump said on Twitter.

PRECISION GUIDANCE

Japan has also urged China to play a bigger role in restraining North Korea’s nuclear and missile programs.

Prime Minister Shinzo Abe’s top national security adviser, Shotaro Yachi, met China’s top diplomat, State Councillor Yang Jiechi, for five hours of talks near Tokyo on Monday after the North’s latest test.

Yachi told Yang that North Korea’s actions had reached a new level of provocation.

“Japan and China need to work together to strongly urge North Korea to avoid further provocative actions and obey things like United Nations resolutions,” Yachi was quoted as telling Yang in a statement by Japan’s foreign ministry.

A statement from China’s foreign ministry after the meeting made no mention of North Korea.

North Korea has claimed major advances with its rapid series of launches, claims that outside experts and officials believe may be at least partially true but are difficult to verify independently.

A South Korean military official said the North fired one missile on Monday, clarifying an earlier assessment that there may have been more than one launch.

The test was aimed at verifying a new type of precision guidance system and the reliability of a new mobile launch vehicle under different operational conditions, KCNA said.

However, South Korea’s military and experts questioned the claim because the North had technical constraints, such as a lack of satellites, to operate a terminal-stage missile guidance system properly.

“Whenever news of our valuable victory is broadcast recently, the Yankees would be very much worried about it and the gangsters of the south Korean puppet army would be dispirited more and more,” KCNA cited leader Kim as saying.

(Reporting by Jack Kim and Ju-min Park; Additional reporting by James Pearson in SEOUL, Ben Blanchard in BEIJING, and Elaine Lies in TOKYO; Editing by Dan Grebler and Paul Tait)