India, Jan. 11 -- North Korea's military accused South Korea of flying drones across the border between the nations this week, warning Saturday that South Korea will face consequences for its "unpardonable hysteria." South Korea quickly denied the accusation. But the development is likely to further dim prospects for efforts by South Korea's liberal Government to restore ties with North Korea.

North Korean forces used special electronic warfare assets on Sunday to bring down a South Korean drone flying over North Korea's border town. The drone was equipped with two cameras that filmed unspecified areas, the General Staff of the North's Korean People's Army said in a statement carried by state media.

South Korea infiltrated another drone...