Seoul and Tokyo are moving to mend ties strained over historical and territorial disputes as they recognize the growing importance of bilateral cooperation over North Korean threats and other issues of mutual concern.

The move comes as the U.S. calls on its key Asian allies to exercise restraint and move toward reconciliation amid its deepened engagement in the strategically vital region.

On Sunday, President Lee Myung-bak and Japanese Prime Minister Yoshihiko Noda shared the need to develop the bilateral relationship into a future-oriented one, Lee’s spokesperson Park Jeong-ha told reporters.

They met briefly after the Asia Pacific Economic Cooperation meeting in Russia’s Vladivostok.

Seoul’s Foreign Minister Kim Sung-hwan and his Japanese counterpart Koichiro Gemba also held brief talks on Saturday on the sidelines of the forum which ended Sunday.

“The two foreign ministers shared the view that both should remain cool-headed in order to ease the current bilateral situation as soon as possible,” the South Korean Foreign Ministry said in a press release.

“The two neighbors agreed to continue close cooperation on North Korea, economy, culture and other areas, and close communication between the two foreign ministries.”

The two neighbors have been engaged in an intense war of words over the past month.

Rekindling the territorial spat over Dokdo, President Lee visited Korea’s easternmost islets five days before Korea’s Aug. 15 Liberation Day.

He also called for Japan’s Emperor Akihito’s apology as a condition for him to visit Korea. The visit and the remarks drew an angry response from Tokyo officials and politicians, worsening the relationship to its lowest in recent memory.

While attending the APEC forum, U.S. Secretary of State Hillary Clinton urged Seoul and Tokyo to exercise restraint over the territorial row.

“I raised these issues with both of them, urging that their interests really lie in making sure that they lower the temperature and work together, in a concerted way, to have a calm and restrained approach,” Clinton told reporters.

Observers say that although Korea and Japan could quiet down the conflict for now, the issues would continue to flare up later on, given that the two sides take strictly different positions over long-running issues.

Japanese politicians have been spewing out remarks denying its past ahead of the possible parliamentary elections expected as early as next month. Tokyo has also said that it would bring the issue to the International Court of Justice, although the legal process cannot proceed without Seoul’s consent.

Also on the sidelines of the APEC forum, President Lee and Hillary Clinton held talks Sunday. They stressed the need for cooperation between South Korea, the U.S. and Japan in resolving North Korea’s nuclear issues.

“As the foundation of the bilateral relationship is sturdy, our cooperative ties will be strengthened in the future,” Lee was quoted by his spokesperson as saying during the talks.

“Amid the world’s difficult economic conditions, (I) hope that Iran issues will be resolved as soon as possible. The resolution of the Iran’s nuclear issue is important for the resolution of the North Korean nuclear issue.”

The top U.S. diplomat said that Washington carefully watches Pyongyang’s nuclear issue and its people’s livelihoods, stressing that both denuclearization and reform are crucial, according to Lee’s aides.

Clinton also underscored China’s role in handling Pyongyang.

Meanwhile, South Korea and Vietnam agreed to make efforts to conclude free trade talks between the two countries at an early date, Cheong Wa Dae said. President Lee and Vietnamese President Truong Tan Sang met on the sidelines of the APEC forum.

South Korea and Vietnam launched negotiations last week to take down trade barriers. Bilateral trade has increased steadily to reach $18.5 billion last year.

The two leaders also agreed to expand cooperation on atomic energy, defense, green growth, labor exchanges and development areas. The two countries mark the 20th anniversary of diplomatic ties this year.

Also on the sidelines of the meeting, foreign ministers of South Korea and Thailand discussed bilateral cooperation in aviation and other sectors.

By Song Sang-ho (sshluck@heraldcorp.com)