Anti-North Korea protesters rally in Seoul chanting slogans against Pyongyang.

Tensions remain high in the region as North Korea slings daily threats at its southern neighbour and the United States.

Seoul said on Wednesday there was a high probability that North Korea would test-launch a medium-range missile soon as a show of strength.

South Korea's defense ministry on Thursday said North Korean missiles could be shot down if they strayed into its territory.

Despite dramatic war games in the North, most observers say Pyongyang has no intention of igniting a conflict that could bring its own destruction -- but warn that a miscalculation of the situation could have dire effects.

U.S. Defense Secretary Chuck Hagel said on Wednesday that North Korea has been skating close to a "dangerous line".

(SOUNDBITE) (English) U.S. DEFENSE SECRETARY CHUCK HAGEL SAYING:

"The reality is that he is unpredictable, that country is unpredictable. If that is the rea