South Korea stands ready for war against North Korea as an ultimatum loomed for Seoul to halt anti-Pyongyang propaganda broadcasts by late afternoon or face military action.
Tension on the Korean peninsula has been running high after an exchange of artillery fire on Thursday, prompting calls for calm from the United Nations, the United States and the North's lone major ally, China.
North Korea, technically still at war with the South after their 1950-53 civil conflict ended in a truce, not a treaty, has declared a "quasi-state of war" in front-line areas and set a deadline of 5pm Pyongyang time (8.30 UK time) for Seoul to halt the broadcasts from loudspeakers along the border.
Seoul says it will continue the broadcasts unless the North accepts responsibility for landmine explosions this month in the Demilitarised Zone (DMZ) that wounded two South Korean soldiers. Pyongyang denies it planted the mines.
South Korean Vice Defence Minister Baek Seung-joo said on Friday his government expected North Korea to fire at some of the 11 sites where Seoul has set up loudspeakers.
A military source told South Korea's Yonhap News Agency on Saturday that there were signs the North Korean military was preparing to attack the loudspeakers, towing artillery to near the border. The defence ministry said it was checking the report.
"The Blue House is calmly observing the situation and ready to respond strongly against any additional provocations," a spokeswoman told Reuters.
Seoul began blasting anti-North Korean propaganda from loudspeakers on the border on August 10, resuming a tactic that both sides had stopped in 2004.
South Korea said the North had fired one anti-aircraft shell followed by multiple shells on Thursday.
Its military, which said it fired "tens" of artillery rounds in response, raised its alert status to the highest level.
President Park Geun-hye told defence officials to "react firmly" to North Korean provocations, a spokesman quoted her as saying.
"Our military has stepped up monitoring and is closely watching North Korean military movements," South Korea's Defence Ministry said.
The North Korean army said the South fired 36 rounds, six of which landed near its guard posts, in a "reckless provocation," KCNA said.
The United States, which has about 28,500 military personnel in South Korea, said it was concerned and closely monitoring the situation.
US State Department spokesperson Katina Adams said: "Such provocative actions heighten tensions, and we call on Pyongyang to refrain from actions and rhetoric that threaten regional peace and security."
The Pentagon said it would "take prudent measures" to ensure the well-being of US personnel, but did not elaborate.
The first North Korean shell landed in an area about 60 km (35 miles) north of Seoul in the western part of the border zone, the defence ministry said.
Nearly 800 South Korean residents living nearby were ordered to evacuate and stay in shelters, officials said.
North Korea said the South's military "invented a case of 'shell fired by the North'," according to KCNA.
The two Koreas last exchanged fire in October, when North Korean soldiers approached the military border and did not retreat after the South fired warning shots, the South Korean Defence Ministry said at the time. There were no casualties.
Tension between the two Korea's has risen since early this month, when landmine explosions in the Demilitarised Zone (DMZ) of the border wounded two South Korean soldiers.
Seoul accused North Korea of laying the mines, which Pyongyang has denied.
The incident prompted Seoul to stage the propaganda broadcasts.
North Korea on Monday began conducting its own broadcasts.
Thursday's exchange of fire took place during annual joint US and South Korean military exercises.
The two Koreas have remained in a technical state of war since the 1950-1953 Korean War ended in a truce, not a peace treaty.
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