Unification Minister Chung Dong-young is denying rumors of a "June crisis" on the Korean Peninsula.

Speaking to lawmakers, Chung said the rumor has no basis since US President Bush and Defense Secretary Donald Rumsfeld have advocated resolving the nuclear issue through dialogue.

He also said North Korea will suffer a serious food shortage due to plummeting food aid from abroad.

On the smaller delegation to an inter-Korean celebration in Pyongyang, Chung stressed that South Korea's attendance at the event is far more important than the group's size.