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By James Pearson and Jack Kim SEOUL (Reuters) - South Korea demanded the immediate release on Friday of two of its citizens being held in North Korea on accusations spying. Late on Thursday, the North's official KCNA news agency showed images of two middle-aged men it identified as Kim Kuk Gi and Choe Chun Gil speaking at a news conference in the North Korean capital, Pyongyang. It said the two men were South Korean nationals working as spies for Seoul's National Intelligence Service from the Chinese border city of Dandong. "They zealously took part in the anti-DPRK smear campaign of the U.S. imperialists and the puppet group of traitors to isolate and blockade the DPRK in (the) international arena," the agency said, using North Korea's official DPRK acronym for Democratic People's Republic of Korea.