Visiting Chinese Vice-Premier Li Keqiang met Wednesday with South Korean President Lee Myung-bak for talks on bilateral ties and regional issues.

Chinese Vice-Premier Li Keqiang (L) shakes hands with South Korean President Lee Myung-bak in Seoul, Oct 26, 2011. Li is on a two-day official visit to the Republic of Korea (ROK). [Photo/Xinhua]

During the meeting, the Chinese Vice-Premier said China and South Korea had seen rapid development in exchanges and cooperation in various areas, and bilateral relations had been promoted to a new level since the two countries fostered diplomatic relations nearly 20 years ago.

Leaders of the two countries exchanged visits and met frequently, he said, and mutual political trust was deepening constantly. The two nations also established a strategic cooperative partnership. Bilateral trade volume surpassed the target of $200 billion in 2010, two years ahead of schedule, and it was expected to achieve new breakthroughs this year, while people-to-people exchanges had also been very active.

In addition, the two countries had kept close communications and coordination on major international and regional affairs, Li said.

China would continue to attach great importance to China-South Korea relations from a strategic and long-term perspective, and it was willing to work with South Korea to further promote exchanges and cooperation in various areas, and push bilateral ties forward, to help maintain regional peace, stability and common prosperity, Li said.

The high-level contacts should be continued, and more efforts should be made by the two sides to strengthen economic and trade cooperation and promote the establishment of a free trade zone between the two countries, Li said.

Li also said the two countries should expand their currency swap lines from the current 180 billion yuan ($28 billion) to 360 billion yuan ($56 billion), to further boost bilateral trade and investment and help stabilize regional financial markets.

The two countries should also expand people-to-people exchanges and work together to celebrate the 20th anniversary of the establishment of their diplomatic ties next year, Li said.

Lee said South Korea and China maintained sound cooperation in various areas. His country appreciated China's support on the Yeosu World Expo, to be held in South Korea next year, and highly praised China's important role in dealing with the impacts of the international financial crisis.

Expansion of the South Korean won-Chinese yuan swap deal would help maintain regional financial stability and boost bilateral economic and trade cooperation, Lee said.

South Korea would keep high-level contacts with China, and make joint efforts to further promote practical economic and trade cooperation for even greater development, Lee said.

Taking the 20th anniversary of the establishment of the diplomatic ties next year as an opportunity, Lee also pledged to promote friendly exchanges among the two peoples.

With regard to situation on the Korean peninsula, the visiting Chinese Vice-Premier said maintaining peace and stability of the peninsula served the common interests of countries in the region.

Under concerted efforts of the relevant parties, the situation on the peninsula had eased in the second half of this year, Li said. China hoped the various parties could make further efforts to maintain and cement dialogue and the momentum of detente, so as to achieve early resumption of the long-stalled Six-Party Talks to effectively maintain peace and stability and realize denuclearization of the peninsula.

China sincerely supported South Korea and the Democratic People's Republic of Korea (DPRK) in improving their relations through dialogue, and realizing reconciliation and cooperation so as to achieve common development, Li said.

Lee said South Korea appreciated China's major constructive role in the Korean peninsula's issues. Seoul was willing to make concerted efforts with various parties to maintain peace and stability on the peninsula, and push the denuclearization process forward.

South Korea hoped to engage in dialogue with the DPRK and improve inter-Korean ties with a pragmatic attitude.

Li arrived in Seoul earlier in the day for a two-day official visit to South Korea.