Presidential spokesman Park Sun-kyu said North Korea is attempting to increase anxiety in South Korea by causing internal friction.

Park told reporters on Friday that North Korea’s responses following South Korean President Lee Myung-bak’s announcement on the sinking of the Cheonan were not unexpected.

He added that South Korean authorities are closely monitoring North Korea and making appropriate reactions. Park confirmed that the measures Lee announced would be implemented resolutely.

On the turmoil in the financial market, Park said that the South Korean economy is able to handle risks stemming from North Korea. He predicted that the effect of geopolitical risk on the financial market would be limited considering South Korea’s fiscal soundness, foreign exchange reserves and the confidence of the international community.

Park also said that currently there have been no unusual North Korean military movements detected and that the inter-Korean border also has not seen any abnormal activities.