South Korea continues firing drills despite war threats

The action started early this morning after an emergency UN Security Council meeting failed to work out a solution to the crisis.

South Korea's military delayed the drill from the weekend due to bad weather but the rumble of artillery fire could heard through air raid bunkers on the island of Yeonpyeong.

The exercise is being held in a disputed area, which was shelled by Pyongyang in November. Two civilians and two marines died in the worst attack on South Korea territory since the Korean war ended in 1953.

The international community has been split in where it stands on the crisis.

China and Russia have cautioned Seoul against holding the exercise, while the United States has backed South Korea's right to hold the drills.

Korea markets have been hit with the won falling more than 1% to a four-week low against the dollar and stocks also down 1% in early trade.