(4th LD) Seoul, Tokyo call for efforts to overcome economic downturn

(ATTN: UPDATES with additional remarks from South Korean president, Japanese prime
minister in paras 5-8, minor changes)
By Byun Duk-kun
SEOUL, Jan. 11 (Yonhap) -- South Korean President Lee Myung-bak and visiting
Japanese prime minister Taro Aso on Sunday called for joint efforts to overcome
what they called an unprecedented financial crisis that is now threatening to put
the world into a recession.
Japanese Prime Minister Aso arrived here earlier Sunday on a two-day visit that
will include a summit with the South Korean president.
"To overcome the unprecedented financial, economic crisis, it is important not
only for the region but the world that South Korea, which represents the group of
newly developing economies, and Japan, which represents advanced economies, work
together," the South Korean president said in a speech at a state dinner for the
Japanese premier.
Also at the dinner were some 20 representatives from Japan's business circles
accompanying Aso, as well as South Korea's key business and economic leaders,
including the heads of the country's four major business associations, such as
the Federation of Korean Industries.
"The world has greatly changed. It is facing a crisis that is simply unthinkable,
so I believe Korea and Japan strengthening their cooperation it would help
greatly in overcoming that crisis," Lee added.
Aso agreed the countries were now facing the worst economic slump in history.
"This is not because Korea's economy or Japan's economy are in bad condition. But
we are facing a totally different kind of a crisis from any we have ever seen,
while the world economy is becoming more and more integrated," the Japanese
premier said at the dinner.
"In the sense that the world does not yet have a system that can deal with this
new kind of crisis, we must reflect on ourselves and establish a system that will
make sure such a crisis will never recur," he added.
As a way of reviving the countries' sagging economies, the Japanese prime
minister suggested the countries resume negotiations for a free trade deal, known
as economic partnership agreement (EPA), as soon as possible.
"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," Aso said at an earlier meeting here with
South Korean and Japanese businesspeople.
Seoul and Tokyo had held several rounds of preliminary discussions on a trade
deal, but such talks have been suspended since 2004 due to failure to make any
significant progress.
Aso expressed hope he and Lee will be able to move the trade 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."
The Japanese delegation to the upcoming summit included 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, according to South Korea's presidential office Cheong Wa
Dae.
Due to the worldwide liquidity crisis that also hit the region late last year,
this week's summit, scheduled for Monday, was largely expected to focus on joint
efforts to overcome the crisis.
"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.
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, while they are also seeking to set up a multi-billion dollar emergency
fund along with other nations like China.
A Cheong Wa Dae official earlier said the Japanese side had also wanted 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, according the official, who
spoke on condition of anonymity. It has also 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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