South Korean President Lee Jae Myung and Japan¡¯s outgoing Prime Minister Shigeru Ishiba agreed to cooperate on shared challenges, including greying populations, in a bid to solidify their ties.

In a joint statement issued after their bilateral summit in South Korea¡¯s southeastern city of Busan on Tuesday, the two countries agreed to continue working-level discussions on low birth rates, regional growth and measures to prevent suicide, among other issues.

The pledge builds on last month¡¯s Tokyo summit, where the two leaders agreed to establish a consultative body to tackle shared challenges confronting both Asian nations. The bilateral relations, which appeared on a positive track, now face fresh tests as Ishiba has since announced his intent to resign after losing support within his party following a series of election setbacks.

¡°Just as South Korea and Japan are physically close, I hope they will also grow closer emotionally, economically, socioculturally, and in terms of security too,¡± Lee said.

Ishiba said he hopes the two countries will continue to cooperate closely and exchange frequently to achieve tangible results from shuttle diplomacy.

This marks the first visit in over 20 years by a Japanese leader to a South Korean city outside the capital, Seoul, for a bilateral summit, Lee¡¯s office said.

¡°The two governments of South Korea and Japan will expand opportunities for communication between relevant officials in each field and work to strengthen multi-layered connections and cooperation on common social issues,¡± the statement said.

Japan¡¯s ruling party is set to elect a new leader on Saturday, with opinion polls split over whether political scion Shinjiro Koizumi or right-leaning Sanae Takaichi has the most backing among the party¡¯s supporters.

The victor at this week¡¯s election will take over from Ishiba at the helm of the Liberal Democratic Party and probably become the nation¡¯s new prime minister too, subject to a parliamentary vote.