North Korea response to South's planned drills muted

North Korea criticised major land and sea military exercises to be staged by the South on  Thursday, but stopped short of threatening a retaliatory strike as tension remained high on the divided peninsula.

In a show of military might, South Korea will hold a large land drill in the Pocheon region, between Seoul and the heavily armed demilitarised zone (DMZ) separating the two  Koreas.

It will also continue naval live-fire exercises 100km (60 miles) south of the maritime border with North Korea.

"(South Korea) is trying to hide the provocative nature toward the North of the war exercises," Pyongyang's official KCNA news agency said in a comment issued in the form of a  news dispatch rather than in the name of any government organisation.

The South Korean Army is making no secret that the drill is aimed at displaying its firepower to its neighbour.

"Yes, it will be a show of force against that," an army officer said on Wednesday, when asked if the shelling of South Korea's Yeonpyeong island last month was a factor, although he said similar drills had been staged before.

Seoul's financial markets little moved in early trade as investors kept a close eye on how North Korea will react to the drills, although the North's threatening remarks had in the past failed to have a lasting effect.

The land drills in Pocheon, less than 50km (30 miles) north of downtown Seoul, were set to begin at 2 pm.

They will involve three dozen mobile artillery guns, six fighter jets, multiple launch rocket systems and 800 troops.

The North's reaction was relatively calm in comparison  with its threats of a retaliatory strike made as recently as  last week ahead of Monday's live-firing drill on Yeonpyeong, in disputed waters off the west coast of the peninsula.

Analysts say the North is unlikely, at least in the near  term, to undertake any further attack against the South like last month's shelling of Yeonpyeong or the sinking in March of  the Cheonan warship. The South accuses North Korea of sinking  the vessel, though the North denies involvement.

For now, the North is likely to wait and see if its latest  actions, including an offer to readmit international nuclear  inspectors, yield results, such as a return to international  talks on Pyongyang's nuclear programme.

The White House said on Wednesday it did not expect the  military exercises to trigger a North Korean response.

"Exercises that have been announced well in advance, that are transparent, that are defensive in nature, should in no  way engender a response from the North Koreans," spokesperson Robert Gibbs said.

Analysts say Pyongyang is wary of any response by the  South, where the public is calling for tougher action.

The scale and timing of the drills, coming right after Monday's live-fire exercise, indicate South Korea's conservative president Lee Myung-bak sees more political mileage in taking a tough military stance rather than  reverting to dialogue despite indirect overtures from Pyongyang.

Lee's government was heavily criticised at home for a perceived weak response to North Korea's shelling of Yeonpyeong.