Seoul - North Korea has started assembling a Taepodong-2 missile for a test at a missile launch base on the communist state's east coast, South Korean news reports said Friday.

Special transporters brought several parts of a missile to the Musudan-ri base, the Chosun Ilbo newspaper said, quoting government sources. It is believed that the first and second stage of the missile are being readied for test-firing by the end of this month at the earliest.

Sources in Seoul did not rule out the possibility that the Stalinist state wanted to test the missile around February 25, the first anniversary of South Korean President Lee Myung Bak taking office, the paper said.

Relations between the two Koreas soured as Lee scrapped the so-called Sunshine Policy of his liberal predecessors and adopted a tougher course versus Pyongyang, demanding progress in dismantling the North's nuclear weapons programme in exchange for increased aid.

South Korean and US media, quoting intelligence or government sources, reported increased activity at the missile base over the past few days.

Testing of the Taepodong-2 missile, which, if perfected, is believed to be able to reach US territory, would further increase tension on the Korean peninsula.

Pyongyang threatened Seoul with annihilation several times over the past weeks and in late January scrapped bilateral reconciliation agreements and nullified an agreement over its sea border with the South. It accuses South Korea of pursuing a confrontational policy. (dpa)