As UN members prepare to vote to impose stronger sanctions on North Korea, the country is accusing the US and its allies of provoking war by supporting these measures.
Pyongyang marked the 69th anniversary of its founding on Saturday with a big display of pageantry and military hardware.
North Koreans paid respects to their founding father Kim Il-sung and his son Kim Jong-il.
They also praised current North Korean leader Kim Jong-un.
In a rare interview with foreign press in Pyongyang, North Korean diplomats also sent the world a clear message.
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North Korea Ministry of Foreign Affairs spokesperson, Ri Tok Son said supporting sanctions would only incite war.
"European countries claim they do not want to see war, yet they take sides with the US on sanctions that aggravate tension," he said.
The statement came following remarks by French Foreign Minister Jean-Yves Le Drian at a European summit, that sanctions "will apply the pressure needed to bring North Korea to the negotiating table".
UN imposed sanctions would stop textiles and labour exiting Pyongyang and oil from entering the country, effectively freezing North Korea from world trade.
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Russia's Foreign Minister Sergei Lavrov said it's yet to decide whether it will support or oppose the measure.
But in South Korea, experts admit there needed to be a change in response to the North's threats.
Sogang University Professor Jaechun Kim told SBS News sanctions may be the only option.
"That could put enormous pressure on North Koreans," he said.
"It could actually paralyse North Korea's economy and bring it to the brink of regime collapse."
While the US is a close ally to the South, there's a sense of anxiety among residents that President Donald Trump would launch a preventive attack without Seoul's consultation.
Professor Jaechun Kim sits down with SBS News reporter Kirsty Johansen (SBS) Source: AAP
Mr Kim said South Koreans worry that Trump may "cut a big deal" with North Korea to trade the withdrawal of US forces in South Korea, for Pyongyang giving up on threats to fire intercontinental ballistic missiles.
Citizens in Seoul seem to be desensitised to the idea of a North Korean offensive despite being a big target.
Subway stations act as shelters in the city.
Gas masks are ready in cabinets just in case but most residents don't even notice them as they go about their busy lives.
Just two weeks ago, South Korea staged a nationwide evacuation drill.
Residents were notified a month in advance and told to stop work for 20 minutes but many chose to ignore the advice.
Gas masks available in South Korea (SBS) Source: SBS
Australian businessman Rowan Petz has been living in Seoul for three years.
He said while the escalating tensions are a concern for him, it's appears to be business as usual.
"Trade is at an all-time high, we introduced the free trade agreement only a few years ago and that's really driving force to keep business going on the straight and narrow," he said.
"All these sorts of pro actions from the exterior don't really affect Australians involvement in trade and investment in Korea."
