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North Korea has fired artillery into its west coast waters, ratcheting up tension on the already nervous Korean Peninsula.

The shells fell on Pyongyang’s side of the north/ south demarcation line in the Yellow Sea.

The news briefly pushed down jittery South Korean financial markets but they quickly recovered after Seoul said it believed it was only a military drill.

It comes just over two weeks after the North bombarded a South Korean island near their disputed border, killing four people.

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