A ruthless retaliation. The latest threat from North Korea on Monday, promising to turn the South into a sea of fire and pile of ashes. It's response to plans by Seoul and Washington to move an anti missile system onto Pyongyang's doorstep. The $800 million THAAD defense designed to intercept missiles high in the Earth's atmosphere.
The news hasn’t just kicked up a firestorm in Pyongyang, Beijing is also furious. Reuters Ju min Park says Seoul is now doing damage control.>> South Korean President Park says, THAAD is not targeting any third country other than North Korea. Which appears to be a clear message to Beijing to calm down but Chinese officials are upset with Foreign Minister Wang Yi, suggesting there was a conspiracy behind this move.
>> A good relationship with Beijing is important for Seoul. China is a huge market for South Korean products from electronics to cosmetics. Now, some warn that bringing in THAAD could back fire and end up hurting South Korea's economy.>> The decision to deploy THAAD already drove down South Koreans cosmetic shares.
And now, our experts warn that THAAD can lead to wider boycott of South Korean products. Or some actions in retaliation by China that could hit the trade.>> Tensions are already high on the Korean peninsula, Washington recently blacklisting leader Kim Jong Un, a move that the North has called an act of war.
Pyongyang hit back by firing off a ballistic missile from a submarine, which apparently fizzled quickly after launch. The announcement about THAAD has only ratcheted up the tensions. South Korea is expected to confirm where the system will be deployed soon. The allies plan to get it up and running by the end of 2017.