Koreas "exchange fire"

North and South Korean naval ships exchanged fire as both sides claimed the other was in its territorial waters. This isn't all that unusual happening twice before over the last decade, and as in the past, the North apparently crossed the demarcation line. (Reports that their ship was badly damaged.)

The real problem is that now the North will have to stage some act to save face.

I'll link the Guardian first because it's the least sensationalistic. Also AP, NYTimes.