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STORY: In a video provided by the North's official news agency KCNA, which cannot be independently verified by Reuters, people wearing masks and traditional garb danced at Pyongyang’s Kim Il Sung square.

North Korea calls July 27 its "Day of Victory in the Great Fatherland Liberation War" and blames U.S. military presence in the South for tensions on the peninsula.

Leader Kim Jong Un had also made a speech and said his country is ready to mobilise its nuclear war deterrent and for any military clash with the United States, as well as criticised South Korea's new president for the first time, warning Seoul was pushing towards the brink of war.