N.Korea seizes S.Korean assets, warns of war

Ruh roh...

North Korea seized South Korean-owned assets at a mountain resort Friday, warning that the two countries were on the brink of war over the sinking of a warship on their disputed border.

The communist state also declared that highly symbolic cross-border tours to the scenic Mount Kumgang resort had been halted for good, accusing South Korean President Lee Myung-Bak of pursuing "confrontation" with the North.

The action comes amid high tension over the sinking of a South Korean warship last month that left 46 sailors dead.

"The situation has reached such extreme phase that it is at the crossroads of a war or peace, much less thinking of the resumption of the tour," a North Korean state agency said.