NARA, Japan (AP) — South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi agreed to step up cooperation in areas including economic security, defense and searching for the remains of Korean forced laborers, as both countries face growing uncertainty and regional challenges.

The two neighbors are both longtime U.S. allies, but their relations have frequently been strained by issues including disputes over their wartime history.

"I believe cooperation between Korea and Japan is now more important than ever and anything else, as we have to continue moving forward to a new, better future amid this complex, unstable international order," Lee said at the outset of the summit Tuesday.

During a joint news conference after the talks, the two leaders said they had agreed to cooperate in areas including supply chains, artificial intelligence, measures against transnational crime and carrying out DNA analysis on remains that may belong to Korean forced laborers found last year at a former Japanese undersea mine.

Takaichi said she had renewed her determination to further improve Japan's relations with South Korea “as I believe the two countries should cooperate and contribute for the stability in the region.”

“This year I will elevate Japan-South Korea relations even higher," said smiling Takaichi, who aims to secure stable ties with Seoul while Tokyo struggles with a worsening dispute with China.

The meeting could deliver a political win as Takaichi seeks to shore up her power. Less than three months after taking office, she enjoys strong approval ratings but her party has a majority in only one of two houses of Parliament. There is growing speculation she may be planning a snap election in hopes of gaining more seats.

Summit held in a city known for deer and ancient architecture

Takaichi is hosting Lee in her hometown, Nara, an ancient capital known for its treasured deer and centuries-old Buddhist temples.

Nara, the center of cultural exchanges between the Korean Peninsula and Japan in ancient times, “carries a special meaning at a time Korea-Japan exchanges are more important than ever," Lee said.

Lee proposed a meeting in the city during October's Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea.

Takaichi will take Lee on a tour Wednesday of Horyu Temple, which includes buildings from the late 7th or early 8th century. They are among the world’s oldest surviving wooden architecture and illustrate Japan's adoption of Buddhism via the Korean Peninsula. Lee also will meet with South Korean residents in Japan before returning home in the afternoon.

Japan’s cultural, religious and political ties to the Korean Peninsula are ancient, but in modern times their relationship has been repeatedly disrupted by disputes stemming from Japan's brutal colonial rule of Korea from 1910-1945.

The Japanese prime minister faces intensifying trade and political tension with China over a remark about Taiwan that angered Beijing days after she took office. Takaichi said that potential Chinese military action against Taiwan, the island democracy Beijing claims as its own, could justify Japanese intervention.

Lee said he had reminded Takaichi of the importance of three-way cooperation with China. A trilateral summit, which Japan was supposed to host last year, did not happen due to Tokyo’s worsening relations with Beijing.

While Lee was in Beijing for talks with Chinese leader Xi Jinping last week, he told reporters that relations with Japan are as important as those with China but that South Korea’s ability to broker reconciliation between its neighbors is limited.

Economic security, North Korea and alliances with the US

Lee said the two leaders agreed to find ways to establish more comprehensive partnerships on economic security, science and technology sectors.

He and Takaichi also discussed the challenges of North Korea and agreed to cooperate in the effort to achieve the North's complete denuclearization.

Japan and South Korea, both key U.S. allies, reaffirmed the strategic importance of their cooperation that also includes Washington, but did not comment on President Donald Trump’s unpredictable diplomacy or his pressure to further increase their defense spending.

Leaders prioritize issues of mutual concern, but small progress on history

Relations between Seoul and Tokyo have begun improving in recent years in the face of shared challenges such as growing China-U.S. competition and North Korea’s advancing nuclear program.

There were early concerns about Takaichi's ability to work with Lee, fed by her reputation as a security hawk and an assumption by some that the left-wing South Korean leader would tilt toward North Korea and China. But so far, both leaders have sought to set aside their differences.

While avoiding their past historical disputes, the two leaders confirmed cooperation in an ongoing effort led by civil society groups to recover and identify remains found last year at the Chosei Mine, a former undersea mining site in the western Japanese prefecture of Yamaguchi, where about 180 workers, mostly Korean forced laborers, were killed in a 1942 accident. The leaders agreed on cooperation to conduct DNA analysis on the remains.

“It's small yet a meaningful" agreement on wartime history issues between the two countries, Lee said.

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Hyung-jin Kim in Seoul, South Korea, contributed to this report. Yamaguchi reported from Tokyo.

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