South Korea is conducting a new round of live-fire drills, in spite of DPRK's repeated warnings. Meanwhile, media reports say Seoul's unification policy towards Pyongyang will see a fundamental shift next year.

South Korea's new drills entered its second day on Tuesday. The five-day naval exercises are being staged in 23 sites around the country. But none are scheduled near the disputed western sea border, known as the Northern Limit Line. Seoul stresses the exercises are part of routine military operations.

In another development, media reports say the South Korean military is considering developing its own stealth fighters in order to effectively deter the DPRK.

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