North Korea rejected the South’s offer for talks on holding regular reunions of families separated by the Korean War, saying the mood for dialogue doesn’t exist, the Unification Ministry in Seoul said.
North Korea fired two short-range ballistic missiles after it launched four into the sea off its eastern coast last week, escalating tensions as the U.S. and South Korea entered the second week of joint military drills.
South Korea’s 10-year government bonds are set for the biggest monthly rally since September as slowing growth in the nation’s largest export market spurred investors to seek the relative safety of sovereign debt.
The U.S. and South Korea began annual military exercises -- denounced by the North as preparations for war -- that coincided with the first reunions of families separated by the Korean War in more than three years.
Families separated by the Korean War more than 60 years ago held tearful reunions as the two Koreas seek to lower tensions that have remained high since the North detonated a nuclear device last February.