2nd LD) Japanese PM arrives in Seoul for talks

(ATTN: UPDATES with remarks from the Japanese prime minister in paras 10-11, 13;
CORRECTS the title of Toyota official to CEO in 4th para)
By Byun Duk-kun
SEOUL, Jan. 11 (Yonhap) -- Japanese Prime Minister Taro Aso arrived in Seoul
Sunday for talks with South Korea's president that were widely expected to focus
on efforts to overcome difficulties that face both countries, including North
Korea's nuclear ambition and the ongoing economic downturn.
President Lee Myung-bak was to host a special meeting and dinner Sunday for the
Japanese premier and about 15 Japanese businesspeople accompanying him, the
presidential office, Cheong Wa Dae, said.
"Prime Minister Taro Aso's visit to Korea will be the first in which he is
accompanied by Japan's key business figures. A special meeting will be held for
them and South Korea's business figures, providing an important opportunity to
expand economic cooperation between the two countries," Cheong Wa Dae said in a
press release.
The businesspeople accompanying Taro include Fujio Mitarai, chairman of Canon and
also head of the Japan Business Federation, better known as Keidanren, and Cho
Fujio, president and chief executive officer of Japan's largest carmaker Toyota,
it said.
The summit between Lee and Aso will be held Monday.
The Lee-Aso meeting, the fifth of its kind, comes amid the worldwide economic
slump that has strongly impacted two of Asia's largest economies.
"President Lee and Prime Minister Aso will exchange views on a wide range of
issues, such as ways to maintain and develop Korea-Japan relations and boost
substantial cooperation in the economic sector, including financial markets,"
Cheong Wa Dae said earlier.
Since the financial crisis hit the region late last year, Seoul and Tokyo have
expanded the ceiling of their foreign currency credit swap lines to US$30 billion
to help ease any short-term liquidity shortages in their countries. They are also
seeking to set up a multi-billion dollar emergency fund along with other nations
like China.
An official at Cheong Wa Dae said earlier the two leaders may also discuss
forging a free trade agreement (FTA).
Aso, meeting with a group of South Korean business leaders for lunch here, said
there was a need for Seoul and Tokyo to "immediately" sign a free trade deal,
known as economic partnership agreement (EPA).
"I understand very well that the governments of Japan and South Korea are
required to realize a Japan-South Korea EPA immediately, which would bring about
benefits to both countries' businesses," he said.
Diplomats from the two sides have held several rounds of preliminary discussions
on an FTA, but such talks have been suspended since 2004 due to failure to make
any significant progress.
Aso expressed hope he and the South Korean president will be able to move the
negotiations forward, saying, "President Lee and I seem to have similar
perspectives...I believe we can build mutually beneficial, so-called win-win
bilateral business relations."
Other agenda items for the summit include launching a joint development
assistance program in Afghanistan and increasing the countries' cooperation in
other international issues, such as the continued dispute over North Korea's
nuclear program, according to Cheong Wa Dae.
The official, who spoke on condition of anonymity, noted the Japanese side also
wants to discuss issues related to fishing in waters between the two countries,
an issue apparently linked to Japan's long but groundless claim to the South
Korean islets of Dokdo in the East Sea.
Seoul has refused to put the issue on the table and has denounced Japan's plans
to conduct underwater research in the East Sea in April, a move seen as an
attempt to lay claim to the South Korean islets.
South Korea's presidents and Japan's prime ministers have frequently met for
"shuttle diplomacy," but such meetings have frequently been postponed or canceled
due to Japan's attempts to claim the islets.
President Lee has often been criticized by the country's liberal forces for not
canceling or delaying meetings with Japanese leaders when Japan makes renewed
claims to Dokdo or new attempts to distort or fabricate the countries' shared
history.
bdk@yna.co.kr
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