Choose dialogue or war, N. Korea tells South

North Korea told South Korea Thursday to choose between dialogue or war, as Seoul made its first concession on aid since the North's deadly bombardment of a border island last November.

The communist state accused Seoul "warmongers" of whipping up hysteria and confrontation over two deadly frontier incidents last year.

Relations have been icy since the South accused the North of torpedoing a warship in March 2010 with the loss of 46 lives.

Tensions rose further after the shelling of the South's Yeonpyeong island, which killed four people including civilians.

The South demands its neighbour accept the blame for both incidents before relations can improve.

But Thursday's statement, from the inspection group of the North's most powerful body the National Defence Commission, repeated denials of involvement in the warship's sinking near the disputed Yellow Sea borderline. (read more)