South Korea gave a low-key response to the Pyongyang's recent move to scrap all Inter-Korea accords in an apparent effort to avoid further escalating tensions on the Korean Peninsula, observers noted.

In a statement issued on Friday, the Democratic People's Republic of Korea (DPRK) declared the abolition of all Inter-Korean political and military agreements meant for reconciliation and cooperation.

The statement, which came two weeks after DPRK's military warned to take an "all-out confrontation" against South Korea, worsening the already strained ties between the two countries and raising the fear that any misunderstanding on either side may lead to war.

DPRK's statement, widely reported in South Korea, did not seem to leave a strong impact on the South Korean public, with the country's stocks closing with only a slight fall of 0.38 percent Friday.

The South Korean Unification Ministry expressed deep regret over Pyongyang's decision and urged direct dialogues between the two sides. The South Korean government and political parties have so far refrained from making impulsive comments on the issue.

Lee Myung-bak said late Friday that his administration will work with an open heart and compassion to help the DPRK. "I believe the South-North relationship will improve before too long," he said.

Yet, the South Korean Defense Ministry has heightened alert along its borders with DPRK in case of possible military clashes. It also threatened to take firm counteraction if the DPRK destroyer was deployed near the disputed maritime areas.

Many believed that Pyongyang had intended to press the Lee Myung-bak administration to adjust its hardline policy toward the North, while ensuing it remains a diplomatic priority for new U.S. President Barack Obama.

Since he came to power, Lee has taken a tough stance toward Pyongyang, suspending economic assistance to the DPRK, linking inter-Korean ties with the denuclearization process, demanding an open-up policy in the DPRK and vowing to review previous agreements on inter-Korean economic cooperation.

Lee's hardline policy caused serious setback to inter-Korean relations, undermining mutual trust and stalling dialogues between the two sides.

Observers believed that neither side wants military conflicts, much less a total war. They noted that in its statement Pyongyang did not mention the Declaration on the Advancement of South-North Korean Relations, Peace and Prosperity signed in 2007 and the South-North Joint Declaration signed in 2000, agreements taken by Pyongyang as the foundation for inter-Korean relations, indicating that a turn for the better is still possible.

Pyongyang also seemed to have left Seoul with some leeway to honor the two documents, the very basis of a decade-long softening of relations on the Korean Peninsula.

Seoul has so far given no hint for a shift in its DPRK policy, but a military confrontation is definitely not in its interest, especially the country is focusing on reviving its slumping economy, observers said.

Meeting a Chinese Communist Party official during his recent visit to Pyongyang, top leader Kim Jong-il reiterated DPRK's commitment to making the Korean Peninsula a nuclear-free zone and its wishes to live in peace with all the parties concerned.

(Xinhua News Agency February 1, 2009)