South Korea's ruling party called Sunday for incentives to encourage settlement on five islands near North Korea, after hundreds fled a deadly artillery bombardment last week.

"If (we are) pushed back from Yeonpyeong and the other four islands, the entire southern half of the Korean peninsula will also be pushed back," said Grand National Party floor leader Kim Moo-Sung.

All but an estimated 20 or so of around 1,500 Yeonpyeong residents fled their island after the North rained down artillery shells and rockets last Tuesday.

Two civilians and two marines were killed on the garrison and fishing island, 18 other people were hurt, homes were shattered and forests set ablaze.

The defence ministry asked journalists on Sunday to leave Yeonpyeong by the end of the day, citing fears of "provocative action" as a naval exercise gets under way.

"At this stage, it is unpredictable what kind of a provocative action North Korea will take, using the South Korean-US joint drills as a justification," the defence ministry said in a statement.

"So we ask journalists on Yeonpyeong island to leave today," it said, adding it cannot guarantee their safety if they stay on.

Yonhap news agency estimated there are about 400 journalists on Yeonpyeong.

South Korea and the United States started a large-scale naval drill further south in the Yellow Sea on Sunday as a show of strength against the North.

The sound of distant firing from the North Korean mainland sparked a brief panic on the island earlier Sunday, with people ordered into bunkers for 40 minutes.

The council administering the island, in a preliminary assessment, put the cost of damage at around five billion won (4.34 million dollars).

Hundreds also fled other border islands for fear of attack.

Kim said a bill to be submitted to parliament Monday would provide further state aid for modernised housing, school fees and supplements to farmers' and fishermen's incomes.

"We must defend the five islands with everything we've got," he said in comments quoted by Yonhap news agency.

"The country has a duty to protect the residents so that they may be able to safely make a living by fishing."

earlier related report

S.Korea asks reporters to leave border island amid tensions
Seoul (AFP) Nov 28, 2010 –

South Korean officials asked journalists on a border island shelled by North Korea last week to leave by the end of Sunday, citing fears of "provocative action" as a naval exercise gets under way.

"At this stage, it is unpredictable what kind of a provocative action North Korea will take, using the South Korean-US joint drills as a justification," the defence ministry said in a statement.

"So we ask journalists on Yeonpyeong island to leave today," it said, adding it cannot guarantee their safety if they stay on.

Yonhap news agency estimated there are about 400 journalists on Yeonpyeong, where two civilians and two marines were killed by the North's bombardment last Tuesday.

Most residents have fled.

South Korea and the United States on Sunday started a large-scale naval drill further south in the Yellow Sea as a show of strength against the North.

The sound of distant firing from the North Korean mainland sparked a brief panic on the island earlier Sunday, with people ordered into bunkers for 40 minutes.

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