Prime Minister John Key and South Korean President Lee Myung-bak today agreed they wanted progress on free trade negotiations but little has been done to ease Korean fears over New Zealand's agriculture sector.

Mr Key said he was quietly optimistic a free trade agreement (FTA) with Korea would be achieved because the South Koreans valued New Zealand's commitment here since the Korean War.

Negotiations over the FTA began last year when Mr Lee visited New Zealand.

Talks have largely stopped since because of Korean fears about New Zealand's agriculture sector.

Despite being the sticking point agriculture was barely mentioned in the joint statement issued by Mr Key and Mr Lee.

The statement, issued after they met today, said they had discussed progress on the FTA and reaffirmed an expectation that negotiations be concluded as early as possible.

They agreed to promote co-operation in energy and natural resources by using the potential for co-operation and welcomed the expansion of bi-lateral co-operation in infrastructure, particularly broadband.

The statement also mentioned deepening co-operation in education, culture, film, information communication technology and research and science -- particularly in the areas of climate change, agriculture and forestry.

Read full story.

Credit: NZPA, www.nzherald.co.nz