South Korea captured a midget submarine believed to belong to North Korea on Monday after the sub's periscope became entangled in a fishing net.

The vessel was seized in the area where a North Korean submarine ran aground in 1996 - a grounding that left 37 people dead and sent relations between the North and South plunging to their lowest level in years.The navy described the vessel captured Monday as a 70-ton, 59-foot-long Yugo-class submarine, which normally carries four to five crewmen. North Korea is believed to have several such craft.

Navy experts said North Korea usually uses Yugo-class subs for infiltration of espionage agents and surveillance. The sub's main weapons are machine guns.

The incident could set back efforts by President Kim Dae-jung's new government to promote a policy of engaging communist North Korea rather than isolating it.

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The sub crossing did not appear to be an accidental border crossing, according to an official of Seoul's Unification Ministry, which handles relations with North Korea. He spoke on condition of anonymity.

A South Korean spokesman said a navy ship was towing the vessel to shore and described it as a "midget submersible."

"The Joint Chiefs of Staff believes that the boat belongs to North Korea," the spokesman said, speaking on condition of anonymity. "We suspect there's somebody inside, but we don't know how many."

Officials said the vessel's periscope got caught in a fish net 11 miles east of Sokcho, a coastal town just south of the North Korean border and 130 miles northeast of Seoul.

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