Q+A - How will tension with North hit South Korea's economy?

SEOUL (Reuters) - Investors at first shrugged off North Korea's heaviest shelling of the South since the end of the civil war in 1953 but later sold the won and bonds as the tension failed to subside.

Adding to the drama on the world's last cold war frontier on Sunday, a U.S. aircraft carrier joined manoeuvres with South Korea off the west coast of the peninsula and less than 150 km (90 miles) from the site of the North Korean attacks on Sunday.