North and South Korea appeared headed toward another clash, as Seoul refused an ultimatum that it halt anti-Pyongyang propaganda broadcasts by this afternoon or face military action, and North Korea said its troops were on a war footing.

North Korea backed off from its threats to retaliate against South Korea for military drills and reportedly offered concessions on its nuclear programme.

North Korea may launch provocative acts as it carries out its leadership succession plan, and could disrupt a G20 summit in South Korea next month, Seoul’s defence minister said today.