South Korea today said it has suspended funding for government-level exchanges with North Korea amid rising tensions over the sinking of a Seoul warship and other issues. <br/><br/>The unification ministry, in charge of cross-border relations, said it has asked 10 ministries or other organisations to suspend spending on the exchanges. <br/><br/>Relations have worsened since an explosion sank a 1,200-tonne corvette near the disputed inter-Korean border on March 26 with the death of 46 sailors.<br/><br/>Suspicions are growing that a North Korean torpedo was to blame. A multinational investigation will report by Thursday. <br/><br/>Seoul is weighing its options in case Pyongyang is found to have launched a torpedo. It is likely to ask the United Nations Security Council to punish the attack.<br/><br/>Media reports say the South is also considering cutting trade with the North in addition to resuming the official loudspeaker broadcasts.