Secretary of State Hillary Clinton talks conflict in Korea - WKOW 27: Madison, WI Breaking News, Weather and Sports

Secretary of State Hillary Clinton talks conflict in Korean peninsula

WASHINGTON (WKOW) -- Secretary of State Hillary Clinton warned that North Korea's sinking of a South Korean warship created a "highly precarious" situation that could lead to a conflict in the Korean peninsula.

Clinton says all of North Korea's neighbors, including China, understood the seriousness of the matter and are working hard to avoid any escalation.

Meanwhile, South Korea's President Lee Myung-bak vowed to make North Korea "pay a price for its provocative acts."

Lee said Seoul would cut all trade with Pyongyang and ask the UN Security Council to impose more sanctions against the North Korean regime.

He also announced that North Korean cargo ships would be prohibited from passing through South Korean waters.

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