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South Korea has developed a cruise missile capable of striking most of the strategic targets in North Korea, amid the drawn-out tension over the communist country's nuclear and missile programs, a military source said Thursday.

The missile, which has a range of 500 kilometers, will be deployed in a guided missile headquarters to be established in central South Korea later this year and will be mounted on 1,800-ton-class submarines to be introduced next year, the source said, requesting anonymity.

The missile, jointly developed by the military and the state-run Agency for Defense Development, is believed to have the capability of hitting North Korea's missile bases entrenched deep in mountains in its rear area, the source said.

The rocket, dubbed "Cheonryong," would be South Korea's longest-range missile, as Seoul had long put limits on the range of its missiles under an accord with Washington, which was concerned over an arms race in the region.

In 2001, the allies revised the guideline to allow South Korea to extend the allowable range for ballistic missiles to 300kms with a 500kg payload, from the previous 180kms. The amendment applied only to ballistic rockets, paving the way for South Korea to develop cruise missiles with longer ranges if the payload is closely restricted.

The news came as tensions are still running high on the Korean Peninsula, with international talks on the North's nuclear weapons program stalled since November.

In early July, North Korea defiantly test-fired seven missiles, including a long-range rocket believed capable of reaching the west coast of the U.S., prompting the U.N. Security Council to adopt a resolution imposing weapons-related sanctions on the country.

Earlier this week, Japan and Australia announced sanctions in line with the U.N. resolution, while the U.S. is also reportedly considering slapping additional financial restrictions on the reclusive North. The North has previously said additional sanctions on it would be tantamount to a declaration of war.

Experts say North Korea's missile capability is superior to that of South Korea. In 1998, North Korea stunned the region by test-firing a Taepodong-I missile that flew over Japan and landed into the Pacific Ocean. The North is believed to possess 600 Scud-type missiles with ranges of 300-500kms and 100 Rodong missiles with a range of up to 1,300kms.

A cruise missile is normally a self-navigating rocket with both conventional and nuclear payloads, which flies at a low, non-ballistic altitude to avoid radar detection with the help of a lifting wing and most often a jet propulsion system. A ballistic missile, on the other hand, follows a suborbital, ballistic flight path with the aim of hitting designated targets.

"We thought of studying and developing cruise missiles, and the U.S. is aware of that," South Korean Defense Minister Yoon Kwang-ung told reporters in July.

"North Korea has a long-range missile capability, but I believe we are ahead of them in terms of accuracy," Yoon said, adding that South Korea has conducted cruise missile tests more than 10 times over the past three years.

The U.S. stations 30,000 troops in South Korea to deter potential aggression from North Korea's 1.2-million-member army, the world's fifth largest. South Korea buys most of its weapons from the U.S.
Seoul, Sept. 21 (Yonhap News)