Signs of N Korea shutting down reactor

Seoul: North Korea may have begun shutting down a nuclear reactor and source of weapons-grade plutonium, just days after it was supposed to do so under a disarmament deal, South Korean media reported on Tuesday.

US spy satellite photographs showed increased activity around the North's Soviet-era Yongbyon reactor, major daily newspaper Dong-A Ilbo said, citing a diplomatic source.

"Washington thinks it is highly likely that those activities are a part of North Korea's operations to close down the nuclear facility," the source with access to intelligence information told the paper.

Yonhap news agency quoted an unnamed intelligence official as saying the reactor was still operating, but there were some unusual signs of activity.

On Monday, local media reported Seoul was thinking of halting the resumption of massive rice aid to its impoverished neighbour until North Korea started decommissioning the plant.

A US-based non-proliferation expert said that, in operational terms, it would cost the Pyongyang government little to begin the shutdown and the reactor could quite easily be restarted if diplomacy broke down again.

North Korea has demanded the release of $25 million in funds which were frozen at a Macau bank because of suspected illicit activity by Pyongyang before it starts to shutter the Yongbyon plant.

Washington has said the funds have been unblocked and are ready to be picked up.