The inter-Korean liaison office in the Democratic People's Republic of Korea's (DPRK) border city of Kaesong was blown up at 14:49 local time Tuesday, the unification ministry of the Republic of Korea (ROK) confirmed.

Observers said the destruction of the liaison office represents a major setback for ironing out issues on the Korean Peninsula.

Officials of the DPRK army said it has been studying an "action plan" to re-enter demilitarized zones.

ROK's presidential office said later "it will respond sternly" if the DPRK continues to raise tensions.

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