Japanese Prime Minister Shinzo Abe and&nbsp;South&nbsp;Korean Prime Minister Lee Nak-yon agreed on Thursday on the importance of cooperating on North&nbsp;Korea&nbsp;and other issues, seeking to rebuild relations amid a bitter feud over history and trade.

But there was a scant sign of real progress and Abe reiterated that&nbsp;South&nbsp;Korea&nbsp;would need to keep its promises for ties between the two Asian allies of Washington to improve.

Relations between Tokyo and Seoul have deteriorated to their lowest in decades since&nbsp;South&nbsp;Korea's top court last October ordered some Japanese firms to compensate&nbsp;Koreans forced to work in their wartime mines and factories.

Japan, which says the matter was settled by a 1965 treaty, calls the decision a violation of international law, and the feud has spilt over into trade and security matters.

About 100 journalists were present at the start of talks in Tokyo, the highest-level meeting between the two sides since the row flared. The meeting began with a handshake but no smiles.

Abe urged Seoul to keep its promises - a reference to the 1965 treaty - in order to restore relations, according to the statement issued by Japan's foreign ministry.

"Our two nations are important neighbours for each other, and keeping in contact over North&nbsp;Korea, bilateral relations and our ties with the United States are quite important," Abe was quoted as telling Lee.

"Relations are currently in quite a severe state but should not be left that way. If&nbsp;South&nbsp;Korea&nbsp;can keep bilateral promises, that could be a chance to return to a healthy relationship," Abe added.

The statement also quoted Lee as saying he shared the view that dialogue was important, while a parallel statement from&nbsp;South&nbsp;Korea's foreign ministry said Lee agreed relations should not be left in their current difficult state.

Abe also repeated Tokyo's stance that the&nbsp;South&nbsp;Korean court ruling overturned the basis of two-way ties.

“Abe said the&nbsp;South&nbsp;Korean top court ruling is in clear violation of international law and ... fundamentally breaks down the legal framework for Japan-South&nbsp;Korea&nbsp;relations," Japanese Deputy Chief Cabinet Secretary Naoki Okada told reporters.

In a sign that gaps remain wide, Lee told Abe: "South&nbsp;Korea&nbsp;has also respected and complied with the 1965 Treaty on Basic Relations and Claims, and will continue to do so," according to Seoul's statement.

Lee, who was in Tokyo to attend Japanese Emperor Naruhito's enthronement ceremony this week, delivered to Abe a personal letter from&nbsp;South&nbsp;Korean President Moon Jae-in in which Moon called for attempts to resolve the pending bilateral issues,&nbsp;South&nbsp;Korea's Yonhap news agency reported.

Moon and Abe have not held a summit in more than a year and the statements made no mention of any meeting planned between the two.

A Japanese government official questioned whether Thursday's meeting would lead to a breakthrough. "It depends on their (South&nbsp;Korea's) deeds, not words," the official told Reuters.

The animosity between Japan and&nbsp;South&nbsp;Korea&nbsp;is linked to the history of Japan's 1910-45 colonisation of the&nbsp;Korean peninsula, the mobilisation of forced labour at companies and women in wartime military brothels, and a row over the ownership of islets in the sea between the two nations.

Earlier this year, the dispute escalated when Japan tightened export controls on materials vital for&nbsp;South&nbsp;Korean chipmakers. It then dropped Seoul from a list of countries eligible for fast-track exports, steps angrily denounced by&nbsp;South&nbsp;Korea.

The spat has prompted protests in&nbsp;South&nbsp;Korea, where Japanese companies and products have been boycotted, and trade between the two countries has slowed sharply.

In August,&nbsp;South&nbsp;Korea&nbsp;announced it would scrap a military intelligence-sharing pact with Japan when it expires next month, just as the allies face rising tensions over North&nbsp;Korea's nuclear weapons programme and increased competition from China and Russia.

Further potential flashpoints loom.

Thousands of&nbsp;South&nbsp;Korean students and activists are expected to gather on Friday to celebrate "Dokdo Day". Dokdo is the&nbsp;Korean name for islets claimed by&nbsp;South&nbsp;Korea&nbsp;and by Japan, which calls them Takeshima.

South&nbsp;Korea&nbsp;is also planning to order asset sales of the Japanese companies found liable for damages under last year's forced labour rulings as early as December, which could further sour bilateral relations, analysts said.

"Precautions must be taken to prevent that," said Yang Kee-ho, professor of Japanese Studies at Sungkonghoe University.

Japanese Prime Minister Shinzo Abe and South Korean Prime Minister Lee Nak-yon agreed on Thursday on the importance of cooperating on North Korea and other issues, seeking to rebuild relations amid a bitter feud over history and trade.

Japanese Prime Minister Shinzo Abe and South Korean Prime Minister Lee Nak-yon agreed on Thursday on the importance of cooperating on North Korea and other issues, seeking to rebuild relations amid a bitter feud over history and trade. But there was a scant sign of real progress and Abe reiterated that South Korea would need to keep its promises for ties between the two Asian allies of Washington to improve. Relations between Tokyo and Seoul have deteriorated to their lowest in decades since South Korea's top court last October ordered some Japanese firms to compensate Koreans forced to work in their wartime mines and factories. Japan, which says the matter was settled by a 1965 treaty, calls the decision a violation of international law, and the feud has spilt over into trade and security matters. About 100 journalists were present at the start of talks in Tokyo, the highest-level meeting between the two sides since the row flared. The meeting began with a handshake but no smiles. Abe urged Seoul to keep its promises - a reference to the 1965 treaty - in order to restore relations, according to the statement issued by Japan's foreign ministry. "Our two nations are important neighbours for each other, and keeping in contact over North Korea, bilateral relations and our ties with the United States are quite important," Abe was quoted as telling Lee. "Relations are currently in quite a severe state but should not be left that way. If South Korea can keep bilateral promises, that could be a chance to return to a healthy relationship," Abe added. The statement also quoted Lee as saying he shared the view that dialogue was important, while a parallel statement from South Korea's foreign ministry said Lee agreed relations should not be left in their current difficult state. Abe also repeated Tokyo's stance that the South Korean court ruling overturned the basis of two-way ties. “Abe said the South Korean top court ruling is in clear violation of international law and ... fundamentally breaks down the legal framework for Japan-South Korea relations," Japanese Deputy Chief Cabinet Secretary Naoki Okada told reporters. In a sign that gaps remain wide, Lee told Abe: "South Korea has also respected and complied with the 1965 Treaty on Basic Relations and Claims, and will continue to do so," according to Seoul's statement. Lee, who was in Tokyo to attend Japanese Emperor Naruhito's enthronement ceremony this week, delivered to Abe a personal letter from South Korean President Moon Jae-in in which Moon called for attempts to resolve the pending bilateral issues, South Korea's Yonhap news agency reported. Moon and Abe have not held a summit in more than a year and the statements made no mention of any meeting planned between the two. A Japanese government official questioned whether Thursday's meeting would lead to a breakthrough. "It depends on their (South Korea's) deeds, not words," the official told Reuters. The animosity between Japan and South Korea is linked to the history of Japan's 1910-45 colonisation of the Korean peninsula, the mobilisation of forced labour at companies and women in wartime military brothels, and a row over the ownership of islets in the sea between the two nations. Earlier this year, the dispute escalated when Japan tightened export controls on materials vital for South Korean chipmakers. It then dropped Seoul from a list of countries eligible for fast-track exports, steps angrily denounced by South Korea. The spat has prompted protests in South Korea, where Japanese companies and products have been boycotted, and trade between the two countries has slowed sharply. In August, South Korea announced it would scrap a military intelligence-sharing pact with Japan when it expires next month, just as the allies face rising tensions over North Korea's nuclear weapons programme and increased competition from China and Russia. Further potential flashpoints loom. Thousands of South Korean students and activists are expected to gather on Friday to celebrate "Dokdo Day". Dokdo is the Korean name for islets claimed by South Korea and by Japan, which calls them Takeshima. South Korea is also planning to order asset sales of the Japanese companies found liable for damages under last year's forced labour rulings as early as December, which could further sour bilateral relations, analysts said. "Precautions must be taken to prevent that," said Yang Kee-ho, professor of Japanese Studies at Sungkonghoe University.

Japan's Shinzo Abe renews call on South Korea to keep promises to mend ties

Japan has approved the shipment of a high-tech material to South Korea for the first time since imposing export curbs last month, but doubled down on political pressure and warned it could broaden restrictions on deliveries to its Asian neighbour.

Japan has approved the shipment of a high-tech material to South Korea for the first time since imposing export curbs last month, but doubled down on political pressure and warned it could broaden restrictions on deliveries to its Asian neighbour. The approval and subsequent warning illustrate how Tokyo is ready to up the ante in the diplomatic row and yet unwilling to fully cut off exports to South Korea. The dispute, rooted in their wartime past and exacerbated by the recent tightening of curbs on shipments of three high-tech components, has stoked nationalism and raised trade concerns. Relations between the two US allies worsened late last year as part of a decades-old dispute over compensation for forced labourers during Japan's occupation. South Korea has invoked its difficult history with Japan, which colonised the Korean peninsula during World War Two. "Usually, we don't announce each time we give export permission. However, the South Korean government has referred to our moves as an embargo on exports, which is unfair criticism," Japanese Industry Minister Hiroshige Seko told a briefing. It is the first time since the export curbs were introduced last month that Japan has allowed shipment of one of the three high-tech materials, he said. He was quick to add Tokyo would expand the curbs beyond the three specialised chemicals - fluorinated polyimides, photoresists and hydrogen fluoride - if there were any cases of "improper" use. Some of the chemicals, which are used to make smartphone displays and chips, can also be used in weapons. Japanese officials have cited unspecified security reasons for their export curbs. But they have pointed to an erosion of trust after South Korean court rulings last year ordered Japanese firms to compensate wartime forced labourers. Tokyo says the matter was settled by a 1965 treaty normalising bilateral ties. South Korea's president, Moon Jae-in, said on Thursday that tighter curbs would undermine Japan's international credibility and accused Tokyo of using its industrial advantage as a weapon against another country. "Even if there are any gains, it will be short-lived. In the end, it is a game without winners, where everyone, including Japan itself, becomes a victim," Moon said. White list The high-tech material that has been just cleared by Japan for export is EUV photoresists, South Korean Prime Minister Lee Nak-yon said. The chemical is crucial for Samsung's advanced contract chipmaking production. Samsung declined to comment. But it remains unclear if this approval from Tokyo signals a breakthrough in trade relations. "They approved only one out of a number of items," a South Korean senior trade ministry official pointed out. A presidential official said: "It doesn't mean that uncertainties have been completely removed for the other items." Japan has removed South Korea from the "white list" of countries with fast-track trade status, meaning some exporters may have to go through a lengthy permit application process to ship restricted items to South Korea. That covers a broad range of items, including those applicable to weapons production and machine tools. South Korea, which was scheduled to take a call on a plan to drop Japan from its "white list" on Thursday, has, however, put off the decision until further discussions. But the country has said it plans to tighten regulations on imported coal ashes, mostly from Japan, used to produce cement, and has proposed tax benefits for local firms in case they need to buy foreign chemical makers as Seoul tries to cut reliance on Japan. The curbs have also prompted concern among corporate Japan. "This situation benefits neither Japan nor South Korea," Masashi Oka, senior executive vice president at Nikon, told a recent briefing. "We strongly hope that both countries can return to normal economic activity as soon as possible." Given the curbs in place, Japan's approval to export the three materials could take up to 90 days, slowing shipments. Vital link The export curbs highlight how Japan controls a vital link in the global supply chain. It remains a major player in specialised chip components, even though it was overtaken as a chipmaker years ago by South Korea. At a New York event for a new flagship phone launch, the head of Samsung's mobile division told reporters he could not rule out a potential impact on the supply chain for smartphone production if the curbs dragged on for more than four months. Shares of Tokyo Ohka Kogyo rose 3.9% and Stella Chemifa surged 10.1% after the latest export approval. Tokyo Ohka Kogyo makes photoresists and Stella Chemifa produces hydrogen fluoride, both materials affected by the export curbs. South Korean chipmakers are hitting a dead-end in their quest to find alternatives for key Japanese materials that have been slapped with restrictions, raising the prospect of major disruption to their operations in coming months.

Japan greenlights first South Korea export since July curbs, but with a warning

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Japan's Shinzo Abe renews call on South Korea to keep promises to mend ties

Japan greenlights first South Korea export since July curbs, but with a warning