Lee told Abe that his government will continue to comply with a 1965 bilateral treaty on state-level reparations on Japan's 1910-45 colonization of Korea and normalizing diplomatic ties between Seoul and Tokyo, according to Cho.

Lee also stressed the importance of civilian exchanges including those by youth between the neighbors.

In response, Abe was quoted as reiterating Tokyo's position that a state-to-state promise should be kept. Japan claims all compensation-related issues were resolved in the 1965 deal, while South Korea's Supreme Court ruled victims still have their individual rights to compensation.

The Lee-Abe talks are expected to serve as a "turning point" in efforts to mend fences, as the two sides agreed to hold "brisk, official" follow-up diplomatic consultations, according to a senior South Korean government official. The two sides agreed to characterize the session as "talks," not just a meeting, he added.

He said the South Korean prime minister seems to have attained his "goal" of creating the mood for fostering dialogue between the two sides.

On the possibility of Moon and Abe having a summit, the official said no specific proposal was put forward during Thursday's talks.

"But it does not mean (the two nations) are negative toward holding the summit or ruling out such a possibility. The government is always open to holding (a Moon-Abe) summit," he said.

Speculation is widespread that Moon and Abe may have a separate meeting should they attend international summits scheduled in November.

In the letter, meanwhile, Moon pointed out that South Korea and Japan are key partners for peace and security of Northeast Asia.

Lee and Abe also agreed on the importance of promoting one-on-one cooperation and trilateral partnerships involving the United States to deal with North Korea's nuclear issue.

Lee is scheduled to return home later in the day after wrapping up a three-day trip. (Yonhap)