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 Korea, SouthTension Flares Between North and South Over Sinking of SubIn March 2010, the South Korean warship
Cheonan
was sunk in an area of the Yellow Sea that's in dispute with North Korea. Forty-six sailors were killed. South Korea suspected North Korea was responsible and ordered an international investigation so the results of the probe would be perceived as impartial. In May, investigators produced a piece of a torpedo propeller that they believed had a North Korea serial number, evidence, South Korea said, that the North was responsible. South Korea then formally accused North Korea of launching the attack; North Korea denied the accusation and threatened "all out war" if South Korea moved to punish North Korea or retaliate. Tension between the two nations reached a crisis point. South Korea cut trade with North Korea, closed sea lanes, and blasted propaganda at the border through loud speakers.
Prime Minister Chung Un-chan resigned in July 2010 after parliament rejected his plan to move several ministries out of Seoul. At the same time, President Lee reshuffled much of his cabinet. Parliament approved Kim Hwang Sik as prime minister in October.
In March 2012, the four-years-pending free-trade agreement with the U.S. became a reality. South Korea's trade minister looked to the deal to provide an uptick in jobs and increase overall economic health of the country. The agreement was not without its detractors, however; during the vote in the national assembly, an opposition member created chaos by detonating a tear-gas canister.
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