A malfunctioning South Korean ballistic missile blew up as it plowed into the ground.
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The explosion and subsequent fire panicked residents of the coastal city of Gangneung.
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No injuries were reported from the explosion, which involved a short-range Hyumoo-2 missile.
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The drills are designed to show the allies' ability to deter a North Korean attack on the South.
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They include bombing runs by F-15 strike jets and launches of Hyumoo-2 surface-to-air missiles.
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