South Korea has stepped up its military presence on the disputed Yeonpyeong island, ahead of the exercises.

The country has also approved the illumination of a symbolic monument near the border with the DPRK - a move which could be seen as provocative.

The South Korean military is tightening its grip on Yeonpyeong island.

There are several newly-constructed defense facilities, with radar stations along the coastal area, and docked naval vessels.

Residents of the island are pleased with the swift response of the military, following the shelling incident on November 23rd. They hope the army will maintain a strong presence.

Residents, Yeonpyeong island, said, "The military's response was efficient. Two or three hours after the shelling, soldiers came to island and offered us shelter and food. We were safe and sound that night."

Some activists dressed themselves in military uniforms, pushing for military action against Pyongyang. But most residents of the island favor a peaceful resolution.

Residents, Yeonpyeong island, said, "We never want war. People like me have been through the Korean war. We have experienced three crisis like this since the war. "

On Tuesday, religious groups turned on Christmas illuminations around a light tower on a mountain in South Korea, the scene of a fierce battle during the Korean war.

The monument has been inactive since June 2004, when both nations signed an agreement to end public activities near the demarcation line.

South Korea's defense ministry approved the request, saying it was normal civil activity.

The tower is situated along the military demarcation line, just 3 kilometers from the DPRK. The DPRK has called it a provocative action, saying it could trigger conflict.

Meanwhile, in a further escalation of tension, the South Korean Defense ministry has issued its highest alert for the area. Land, marine and air forces are all on standby, with F-15 combat planes carrying out regular maneuvers, and a fleet of 10 destroyers docked off the coast.