At stake is an unresolved dispute over compensation for the Korean wartime labourers used by Japanese firms during World War Two, which had worsened bilateral relations in recent years. The South Korean presidential office also said that the two leaders agreed to continue discussions for prompt resolution of the pending issues. A South Korean court has ordered the seizure of assets of Japanese companies accused of not compensating some of their colonial-era labourers. read moreTokyo says the issue of compensation was settled under a 1965 treaty normalizing diplomatic ties and providing South Korea with economic assistance, and has warned of serious repercussions if the orders are enforced. Japan has urged South Korea to present a solution, and a Seoul official said it would devise a proposal that can win consent from both South Korean victims and Tokyo.

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