South Korean, Japanese leaders come to economic agreements

Oct 19, 2011, 8:47 GMT

Seoul - South Korean President Lee Myung Bak agreed to improve sometimes difficult relations with Japan during a summit Wednesday with Japanese Prime Minister Yoshihiko Noda.

The two leaders only partly addressed historic areas of tension but agreed to move forwards on economic cooperation.

Lee said he and Noda, who arrived in Seoul Tuesday for a two-day visit, agreed to cooperate to resume talks to sign a free trade deal that has been stalled since 2004.

'Also, we agreed that we will increase support for closer business ties in key sectors like electronic components and materials,' Lee said.

Japan has requested a resumption of the trade talks primarily because of South Korea's concern over its trade deficit with Japan and Seoul's demand for greater access to Japan's agricultural sector.

Japan is a major source of electronic components for South Korean companies and a major market for South Korean farms and food companies.

The leaders also agreed to increase their currency swap line to 70 billion dollars to increase liquidity in response to global economic uncertainty.

Both leaders reaffirmed their commitment to cooperate more closely in their joint efforts to end North Korea's nuclear programme.

The relationship between the neighbours has been troubled by issues including trade, conflicting territorial claims, Japan's 1910-1945 colonial rule of Korea and its military's taking of Korean women as sex slaves during World War II.

Lee said he asked Japan to make efforts to mend ties over several historic issues. 'It is important to move towards the future without forgetting the past,' he said.

Noda replied, 'Although both our countries face difficult issues, we can overcome any problems if both of us, as leaders, are willing to advance bilateral relations.'

The Japanese premier also returned five volumes of ancient royal documents taken from Korea during Japan's occupation. They were among 1,205 volumes that his predecessor, Naoto Kan, promised to return to South Korea before December 10.

It was not clear exactly what other areas of historic tension were discussed, but officials told reporters that the World War II sexual slavery was not raised.

Seoul has previously tried to start negotiations with Tokyo on compensating the victims. Japan has said it considers the issue closed, resolved by a 1965 treaty that normalized diplomatic ties between the two countries.

Lee said he would be glad to visit Tokyo in response to an invitation issued by Noda, but a date had yet to be set for the trip.

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