Prime Minister Yoshihide Suga urged South Korean President Moon Jae-in to take actions to resolve the issue of the lawsuit brought by former wartime requisitioned workers from the Korean Peninsula.
Suga spoke to Moon on the phone on Thursday morning, the first dialogue between the two leaders since Suga took the top post last week and the first Japan-South Korea summit dialogue since December last year.
Seoul requested the dialogue, which lasted about 20 minutes.
"We must not leave unresolved the bilateral relation that is currently in a very severe situation," Suga was quoted as saying to Moon over the phone, demanding Moon bring the frosty relationship back to normal.
"Based on Japan's consistent position, I would like to strongly demand South Korea take proper actions," Suga said to journalists after the telephone dialogue.
A South Korean court has ruled that a Japanese company's assets in South Korea should be seized to compensate former requisitioned workers. The Japanese company filed an appeal in August, pointing out the issue was already resolved by a 1965 agreement signed by Japan and the Republic of Korea.
Suga and Moon also exchanged opinions on geopolitical issues in the region.
"Japan and South Korea are very important neighboring countries to each other," Suga was quoted as saying to Moon. "It is important for our nations to cooperate and for Japan, South Korea and the United States to jointly work on matters such as North Korea."
Suga also asked Moon to cooperate on resolving the issue of abductions of Japanese nationals by North Korea, and Moon responded positively.
The two also agreed to accelerate discussions to resume business travel between their nations, which has been suspended due to the spread of the novel coronavirus.
Earlier in the day, Suga held a telephone talk with U.N. Secretary-General Antonio Guterres and confirmed that Japan would cooperate with the United Nations in dealing with the novel coronavirus and other issues.
"Japan attaches importance to multilateralism," Suga was quoted as saying to Guterres. "We aim to realize order based on the rule of law through the concept of a 'free and open Indo-Pacific.'"
Since taking office, Suga has held telephone talks with foreign leaders including U.S. President Donald Trump. He is scheduled to have a telephone conversation with Chinese President Xi Jinping on Friday.
-- Talks with IOC's Bach
Suga held a telephone conversation with International Olympic Committee President Thomas Bach on Wednesday and confirmed his intention to cooperate closely on measures against the novel coronavirus in preparation for the Tokyo Olympics and Paralympics next summer.
The government said in a statement the prime minister had set up a coordinating committee with the Games' organizing committee and the Tokyo metropolitan government to step up efforts to deal with the novel coronavirus.
Bach said the Games are historic events and will bring hope to the people of Japan who have overcome various hardships. He also indicated his intention to visit Japan soon.
Also on Wednesday, Suga spoke on the phone with British Prime Minister Boris Johnson to welcome an agreement in principle on a new trade pact and agreed to cooperate on reforming the World Trade Organization.
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