South Korea's military faces a "desperately dangerous situation" after the sinking of a warship and must respond sternly to any future North Korean provocations, the new army chief said Friday.

"With a resolute determination, the military must put together all of its capabilities and resources to sternly deal with any provocations by North Korea," General Hwang Eui-Don said in his inauguration speech.

Hwang took over in a reshuffle of military top brass amid criticism that the armed forces reacted sloppily to the sinking of the corvette near the disputed sea border on March 26. A total of 46 sailors were killed.

State inspectors recommended that 13 generals, 10 lower-level officers and two civilian defence ministry officials be punished. The country's top military officer Lee Sang-Eui offered his resignation.

South Korea announced non-military reprisals against its impoverished communist neighbour after a multinational investigation concluded last month that a submarine from the North had torpedoed the Cheonoan.

The sinking has dramatically escalated tensions on the peninsula ahead of the 60th anniversary of the start of the Korean war on June 25, 1950 and has stalled efforts at resuming North Korea nuclear disarmament negotiations.

The North, which angrily denies any involvement, has threatened military action if the UN Security Council accepts Seoul's request to censure Pyongyang.

Pyongyang's official Korean Central News Agency (KCNA) on Friday again accused Seoul of fabricating the evidence in the sinking.

"This has pushed the inter-Korean relations to a total collapse and created such (a) tense situation on the Korean peninsula that a war may break out right now," KCNA said.

Hwang said he would work to build a strong army that is "trusted and loved by the people," according to a transcript of his inauguration speech released by the defence ministry.

The new army chief told reporters Thursday that chances of another military provocation are quite high.

"North Korea is not showing any direct moves for provocations, but when we look at its past pattern of behaviour, there are fair chances of provocations and that's why we raised" alertness, he said.