North Korea 'in state of war' with South

NORTH Korea says it has entered a "state of war" with the South and will deal with every inter-Korean issue accordingly.

The announcement was made in a joint statement attributed to all government bodies and institutions and carried by the official Korean Central News Agency (KCNA).

It comes as the North ratchets up talk of striking targets in the United States.

"As of now, inter-Korea relations enter a state of war and all matters between the two Koreas will be handled according to wartime protocol," the statement said.

"The long-standing situation of the Korean peninsula being neither at peace nor at war is finally over."

Read more at ABC news online.