The brazen attack on the civilians, one of the bloodiest by the Abu Sayyaf in recent years, also wounded about a dozen other villagers, officials said.
About 40 to 50 Abu Sayyaf militants, armed with assault rifles, staged the attack in a coastal village in Talipao town in predominantly Muslim Sulu province, where the militants have survived in jungle encampments despite years of US-backed Philippine military offensives, marine Brigadier General Martin Pinto and other military officials said. Sulu, about 950 kilometers south of Manila, is one of the country's poorest provinces.
The motive for the attack was not immediately clear, but Pinto said it may have been sparked by a family feud involving some of the militants.
Among those killed were at least four members of a Talipao civilian security force called Barangay Police Action Team that has been helping the military fight the jungle-based militants in recent months, Pinto said.
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The Abu Sayyaf, which has about 300 armed fighters split into several factions, was organized in the early 1990s in the south, but it has been crippled by government operations and endures largely due to huge ransoms from kidnappings.
The Abu Sayyaf is one of about four smaller Muslim insurgent groups outside of a peace deal signed by the Philippine government in March with the main rebel group, the 11,000-strong Moro Islamic Liberation Front that calls for the creation of a more powerful and potentially larger autonomous region for minority Muslims in the south of the largely Roman Catholic country.