Seoul, Berlin find common ground on financial regulation, trade

Feb 8, 2010, 7:26 GMT

Seoul - German President Horst Koehler said Monday that he and his South Korean counterpart are in 'full agreement' that the international financial economy needs 'clear liability regulations.'

He spoke after meeting President Lee Myung Bak, where they also discussed trade relations, the G20 summit and reunifications.

Both leaders said taxpayers should not be burdened with the costs of investment bankers' mistakes, Koehler said. But they failed to tackle the problem of what to do with banks deemed 'too big to fail.'

The German president expressed his support for a free trade deal being negotiated between South Korea and the European Union, with a formal agreement expected in May.

Lee stressed 'the importance of deepening and expanding economic and trade cooperation' with Germany, South Korea's largest trading partner in Europe

Lee also asked Koehler for support in preparing the upcoming G20 summit on November 11-12, which Seoul is to host and chair.

South Korea and Germany share the experience of a country divided, and Lee said that 'Germany's reunification process is thought to be helpful to South Korea.'

Koehler is scheduled to remain in Seoul until Wednesday.