North Korea fired dozens, if not hundreds, of shells into South Korean territory in a clear act of war designed to plunge the Korean Peninsula into armed conflict. At least one South Korean Marine was killed and dozens of civilians were injured when the communist North launched a surprise attack on the island of Yeonpyeong where reports are coming in that fires from the shelling are still burning out of control.

From Fox News:

BREAKING NEWS — North Korea shot dozens of rounds of artillery onto a populated South Korean island near their disputed western border Tuesday, prompting South Korea to return fire and scramble fighter jets, military officials said. At least one South Korean marine reportedly was killed.

The skirmish came amid high tension over North Korea’s claim that it has a new uranium enrichment facility and just over a month after North Korean leader Kim Jong Il unveiled his youngest son Kim Jong Un as his heir apparent.

South Korea’s YTN television said one South Korean marine was killed and that two people were injured. The report said several houses were on fire and shells were still falling on Yeonpyeong island, which is about 60 miles (100 kilometers) west of the coast. The station broadcast pictures of thick columns of black smoke rising from the island.

Yonhap news agency, quoting a military official, said four soldiers were wounded.

President Lee Myung-bak ordered officials to make sure that the firing wouldn’t escalate, according to Yonhap, quoting a presidential official. YTN said between 1,200 and 1,300 people live on the island, citing an island resident.

Lee Myung-bak’s spinelessness is mirrored no doubt by America’s in its case. Only the fact that Barack Obama is President and will never take a strong stance against a communist country keeps us from being drawn inot what could be WW III. But for how long? How long can America not support it’s ally before the Norks realize they can invade without serious repercussions?

From Reuters:

A witness said residents of the island of Yeonpyeong, off the west coast of the peninsula near a disputed maritime border, had been evacuated during the shelling.

The exchange, which lasted for about an hour and then stopped abruptly, was the most serious between the two Koreas in years.

South Korea’s military said one marine had been killed and three seriously wounded in the shelling, the biggest attack in years. The island is about 3 km (1.8 miles) south of the sea border and 120 km (75 miles) west of Seoul.

YTN television quoted a witness as saying 60 to 70 houses were on fire after the shelling and TV footage showed plumes of smoke coming from the island. It said a South Korean fighter jet had been deployed to the west coast after the shelling.

“Houses and mountains are on fire and people are evacuating. You can’t see very well because of plumes of smoke,” a witness on the island told YTN. “People are frightened to death and shelling continues as we speak.”

News of the exchange of fire sent the won tumbling in offshore markets with the 1-month won down about four percent in NDF trading. U.S. 10-year Treasury futures rose and the Japanese yen fell.

The South Korean central bank said it would hold an emergency meeting to assess the possible market impact of the shelling.

South Korea’s military confirmed the exchange of firing, without providing more details.

The attack comes just as a U.S. envoy is traveling to the region after revelations that the North is moving ahead with uranium enrichment, a possible second path to manufacture material for atomic weapons.

Even if the Norks stop now the economic damage cannot be underestimated. But right now I’m seeing unconfirmed rumors that a North Korean fleet is heading into that area. There is also a rumor that the Norks are preparing longer range artillery for a second attack.

If this escalates, which it probably will given the impotence of America in the region, you may want to stock up on Potassium Iodide tablets.

Update: President of Breaking News Wire “tweets” that the Nork Fleet rumors are bogus.

Update: South Korea warns of stern retaliation … if the Norks attack again. The damage (mostly economic) has already been done.  Two South Korean marines are now being reported as being killed in the attack.

Update: Seoul bans civilian boats and planes from the area of the shelling. The North Korean media is claiming the South fired first, which is considered an indicator that the Norks want to cease hostilities.