In his speech Thursday, Mr. Moon said his government was accelerating work on three military programs: a pre-emptive strike system known as "Kill Chain" that would target North Korean missile sites; an air and missile defense system; and a program created to launch devastating strikes against North Korea's military and political leadership should it start a war.
"Short-term, its hard to expect markets to recover fast (from North Korea related jitters)", Hwang said, adding that his team will be on stand-by to provide policy responses to any escalations that occur over the long Chuseok holiday from October 2 through October 9, when local financial markets will be closed.
Lee said North Korea is acting carefully at the border and Pyongyang's troops at the border have been ordered to "report first, taken action later".
China must also be a part of sanctioning the Chinese, he said.
North Korea has accused Mr Trump of declaring war after he warned Kim's regime if he persisted in threatening the United States and its allies after telling UN General Assembly members North Korea would be "totally destroyed" in such an event.
"The top priority is to secure abilities to counter the North Korean nuclear and missile threats", Mr. Moon said.
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US President Donald Trump said Tuesday he is "totally prepared" to use the military options against North Korea.
North Korea has since conducted several nuclear tests, with its sixth and latest taking place earlier this month.
The United States and South Korea are technically still at war with North Korea because the 1950-53 Korean conflict ended with a truce and not a peace treaty.
China opposes the deployment of THAAD because it believes its powerful radar could be used to look inside its territory.
South Korea and the USA insist it is only to curb North Korea's missile threats. South Korea and the United States have said it is only to curb North Korea's missile threats.