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(LEAD) Two Koreas exchange fire at border
(ATTN: CHANGES headline, lead; UPDATES throughout with more background)
SEOUL, Oct. 29 (Yonhap) -- South and North Korean troops exchanged fire Friday near the border in Hwacheon, 118 kilometers northeast of Seoul, an official at the Joint Chiefs of Staff (JCS) here said.

   "Two shots were fired from a North Korean military guard post (GP) toward our GP around 5:26 p.m., and we immediately returned fire with three shots as under the rules of engagement," the official said. "There was no damage from the North Korean shots."

   The GPs are 1.3 kilometers away from each other. The official said after returning fire, South Korea twice issued warnings that the North had breached the armistice that ended the 1950-53 Korean War.

   According to the JCS, the defense readiness posture has been strengthened and forces are prepared for quick mobilization in contingency.

   "It hasn't been confirmed whether the North Korean military took an aimed shot," the official said. "The United Nations Command (UNC) will send a special investigation team to determine whether North Korea had violated terms of the armistice."

   South Korean military officials are looking at possible links between the shooting and the North's threat earlier Friday of physical retaliation over Seoul's refusal to hold inter-Korean military talks.

   Families from the two Koreas are scheduled to have reunions from Saturday in North Korea. The Unification Ministry said the meetings will proceed as scheduled.

   jeeho@yna.co.kr
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