During the summit, their fourth encounter since Koizumi took office in April last year, the two leaders agreed to enhance goodwill between the two nations ahead of the World Cup, and to launch a study group of government officials and private experts aimed at establishing the FTA. Korea has yet to make an FTA pact with any country, feeling isolated in the world where economic blocs are the order of the day. Japan signed such a pact with Singapore this year and is now trying to establish a deal with Korea.

Kim and Koizumi also agreed to institute a temporary visa waiver for Korean visitors bound for Japan to watch World Cup matches, for 45 days beginning on May 15, according to Cheong Wa Dae officials. The Japanese prime minister reaffirmed that he will be returning to Seoul for the opening ceremony of the soccer gala on May 31 with honorary chairman of the Japan Football Association (JFA) Prince Nomiya Takamato, a relative of Japan's Emperor Akihito, and his wife. President Kim for his part expressed his intention to attend both the final and closing ceremony in Yokohama.

Also on the summit agenda was coordination by Seoul and Tokyo in their policy towards North Korea, the officials said. Tokyo is moving to realign its North Korea policy to the hard line one assumed by the US, which Seoul feels will push its "sunshine" policy of inter-Korean reconciliation further into the doldrums.

The two leaders also reviewed progress made in a seven-point agreement reached in October last year in order to resolve outstanding bilateral issues. The package calls for the establishment of a joint study group composed of government and private experts to study the history of the early 20th century, when Korea was under Japanese occupation.

In a joint press conference President Kim said he would take bold action necessary for opening the country to Japanese culture in line with progress in complying with what was agreed to last year.

Prime Minister Koizumi noted that although Japan and North Korea have been encountering difficulties, such as kidnapped Japanese citizens, he is prepared to negotiate with Pyongyang to normalize diplomatic ties based on solving problems with peaceful dialogue.

The two leaders are also planning to collaborate for the successful hosting of the 'Asia IT Ministers Meeting' set for June 1 in Seoul and attended by 25 nations including Japan, China, Vietnam and India. In addition they will expand tourist and employment visas for college students, currently set at 1,000 a year.

Koizumi also announced the import of pork from South Korea, which was halted after a foot and mouth disease outbreak, will be expanded from April starting with Jeju Island.

The prime minister spent the first day of his Seoul trip free from official functions, taking a walk in Seoul for informal talks with Koreans and learning how to play the traditional Korean instrument, the gayageum, during his visit to the National Center for Korean Traditional Performing Arts in southern Seoul. He had dinner at a Korean restaurant in the evening.

(Kim Min-bai, baibai@chosun.com )