Not So Good

I came out of a meeting today to learn that North Korea has fired a number of shells into Yeonpyeong-do (연평도), two islands northwest of Incheon (the location of South Korea's largest airport servicing Seoul) and close to North Korea.


My office building looks down onto the executive office and official residence of the President of the Republic of Korea (South Korea's head of state) but I've just learned that he's not there at the moment. According to this report:

South Korean government officials, including President Lee Myung-bak, were meeting at an underground bunker in Seoul to discuss how to respond to the attack. Lee said he was trying to prevent a greater conflict, although his spokesman said he was still considering how to respond.

Initial reports listed a number of people injured or killed, but as of now most reports are suggesting that one Marine has been killed in the fighting and that the South is retaliating with its own artillery.

Local news is being updated minute-by-minute but some of the early shots from the island are quite dramatic. CNN is currently reporting that the North commenced hostilities by firing around 200 rounds of artillery and at least 14 have been injured. A number of homes are said to be on fire.

The central bank is conducting an emergency meeting, which is scheduled to take place within the hour following a dip in the value of the South Korean Won and local futures taking a battering.
More to come, I'm sure.

UPDATE: There has been financial fall-out across the region with the Thai SET falling in response... and the US / European futures as well.


UPDATE: President Lee Myung-bak urges a resolute response but remains focused on not escalating the situation, according to Yonhap news. As of 5.30PM local time, all 1600 residents of the island have been evacuated and government officials are on standby.


UPDATE: Businessweek is reporting that 14 Korean soldiers have been injured but civilian injuries are still unconfirmed.


UPDATE: The US, Russia and China are pushing for restraint from all parties as well, according to Fairfax media.


UPDATE: The tone on the ground here in Korea has calmed significantly since yesterday. Despite that, tensions are still high following the attack that killed two members of the South Korean armed forces, prompting general outrage both here and abroad.


US President Barack Obama has said that the US forces will join the South Koreans in military exercises currently taking place near Yeonpyeong-do. Let’s hope that’s the end of it.