Japan, S. Korea share stance on economic recovery, N. Korea

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TOKYO, June 27 Kyodo -
Japanese and South Korean finance ministers agreed Saturday to work closely to
nurture recent signs of stabilization in the global economy, sharing the view
that the two Asian powers need to unwind extraordinary policy measures once
recovery is assured.
''Put simply, we agreed Japan and South Korea will continue making efforts to
tide us over the current economic crisis from the global cooperative
standpoint,'' Kaoru Yosano told reporters after he met in Tokyo with his South
Korean counterpart Yoon Jeung Hyun.
Yosano said the two ministers have also shared grave concerns over North
Korea's recent nuclear test.
''I told him that we have deep concerns over North Korea's nuclear test,''
Yosano said. ''South Korea said it similarly has deep concerns and also on this
matter Japan and South Korea agreed to cooperate.''
At a working dinner on Friday, the two ministers exchanged views on North
Korea's nuclear test in late May, according to Japanese and South Korean senior
officials.
They did not discuss issues regarding whether Japan and South Korea would work
together to impose economic and financial sanctions on North Korea, according
to Yosano.
But Yosano said Yoon expressed support for Japan's leadership in drawing up a
new U.N. Security Council resolution, featuring tougher measures against the
North.
The one-day meeting, called the third Japan-Korea Ministerial Finance Dialogue,
was held prior to Sunday's meeting of Japanese Prime Minister Taro Aso and
South Korean President Lee Myung Bak in Tokyo, where North Korean issues will
most likely top the agenda.
On the economic front, Japan and South Korea shared the view that the worst
part of the recession has come to an end, although uncertainties and difficult
conditions persist, the officials said.
The finance ministers agreed that the prospects of Japan and South Korea's
economies, both relying heavily on exports, have been ''brightening slightly,''
Yosano said.
When updating each other on their policies, the officials said, Japan explained
the effects of its massive stimulus measures and the latest guidelines for
fiscal management, which were approved by the government earlier this week to
make preparations for the fiscal 2010 budget.
As for the ''exit strategies'' from the emergency steps taken since the
economic downturn deepened last year, Yosano told the meeting that Japan, South
Korea and other countries ''need to also think'' about what to do after the
current crisis ends, but ''talking about them now is a little too early.''
South Korea likewise acknowledges the importance of finding a way out of the
unordinary measures, one of the South's officials told the press, but ''it is
too early'' to be ready for that until strong signs of sustainability in the
recovery are found.
Yosano and Yoon also agreed to step up their efforts to improve the Asian
financial environment, such as through an upgrade of the current network of
bilateral currency swap schemes to a multilateral operation among Southeast
Asian nations plus China, Japan and South Korea.
In the hope of strengthening cooperation, Japan and South Korea agreed in 2005
to hold an annual finance meeting, with the attendance of finance ministers and
top officials of the two countries.
The first meeting was held in 2006 in Tokyo and the second in 2007 near Seoul.
The two countries did not have time to organize their third meeting in 2008 due
to the eruption of the global financial crisis.
The two countries agreed that the fourth meeting will be organized next year in
South Korea, the officials said.
==Kyodo