Seoul, Tokyo agree to continue talks on free trade deal

By Byun Duk-kun
SEOUL, Jan. 12 (Yonhap) -- Seoul and Tokyo will hold working-level discussions on
resuming free trade agreement (FTA) negotiations while working closely to
overcome the worldwide financial crisis now threatening to cause a recession in
both their economies, Seoul's presidential office Cheong Wa Dae said Monday.

South Korean President Lee Myung-bak and Japan's Prime Minister Taro Aso have
also agreed to closely coordinate their countries' economic policies to help
maximize the impact on their ailing economies, according to the statement
released by Cheong Wa Dae.
"In particular, the two agreed to closely cooperate on reforming their financial
systems, drawing up macroeconomic policies and dealing with protective trade
blocs ahead of the second G-20 summit scheduled for London in April," it said.
The meeting is the fifth of its kind since the Japanese premier took office in
September and comes amid gloomy projections that the world economy could face one
of the worst recessions in history this year, bringing down with it Japan and
Korea, the world's second and 12th largest economies, respectively.
To offset possible short-term liquidity crises in either of the countries, Seoul
and Tokyo have raised the ceiling of their foreign currency swap lines to US$30
billion from $13 billion.
"President Lee noted the expansion of the foreign currency swap lines between
Korea and Japan late last year greatly contributed to the stabilization of
financial markets in the region, as well as the strengthening of financial
cooperation between the two countries," the statement said.
The two leaders also agreed to continue discussions through working-level
officials on the possible resumption of talks aimed at concluding the FTA.
Seoul and Tokyo previously held several rounds of preliminary discussions on
signing the envisioned deal but the talks were suspended in 2004.
"The leaders expressed hope the negotiations will produce an outcome that is
mutually beneficial to both countries," the statement said.
They also noted a need to increase visits and exchanges between their countries'
citizens.
"President Lee and Prime Minister Aso agreed that in order to develop a
future-oriented, mature partnership, Korea and Japan need to establish a mutually
beneficial relationship based on an accurate understanding of history, a
relationship in which the two sides can have a deep understanding of each other
by expanding cultural and personnel exchanges," the presidential office said.
The leaders of South Korea and Japan have held regular meetings in what is known
as "shuttle diplomacy," but the meetings have frequently been postponed or
canceled due to recurring tension over Japan's claim to the South Korean islets
of Dokdo in the East Sea.
Japan's school textbooks have also become a source of heated debate in recent
years as Asian nations, including Korea, contend the texts whitewash Japan's
wartime atrocities committed during World War II.
Commenting briefly on North Korea's nuclear program, the two heads of state
reaffirmed their commitment to negotiations aimed at denuclearizing the communist
nation, saying they will continue to "patiently" work within the six-party
framework, the presidential office said.
bdk@yna.co.kr
(END)