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North Korea's leader Kim Jong-un has said a nuclear launch button is "always on my table", warning the US it will never be able to start a war.
In a televised New Year speech, he said the entire US was within range of North Korean nuclear weapons, adding: "This is reality, not a threat."
But he also offered a potential olive branch to South Korea, suggesting he was "open to dialogue".
North Korea may also send a team to the Winter Olympics in Seoul, he said.
When asked by reporters to respond to Mr Kim's threats, US President Donald Trump said, "we'll see, we'll see".
He was speaking at the sidelines of New Year's Eve celebrations at his Mar-a-Lago resort in Florida.
North Korea has come under increased criticism and sanctions over the past year because of its nuclear weapons program and repeated testing of conventional missiles.
The politically isolated state has carried out six underground nuclear tests over the years and has demonstrated missiles of increasing power.
In November, it tested the Hwasong-15, which achieved altitudes of around 4,475km (2,780 miles) - more than 10 times the height of the International Space Station.
The country claims to have developed a fully deployable nuclear weapon, though there is still some international skepticism about its true capacity to carry out such an attack.
In his televised speech, Kim re-emphasized his focus on the weapons program, saying his country must "mass produce nuclear warheads and ballistic missiles and speed up their deployment".
But he also suggested that the relationship between North and South Korea - still technically at war - could be eased in the coming year.
"The year 2018 is a significant year for both the North and the South, with the North marking the 70th anniversary of its birth and the South hosting the Winter Olympics.
BDST: 1445 HRS, JAN 1, 2017
AP