The country's national security advisor said that diplomatic authorities of South Korea and Japan are entering the final stage in their negotiations on historical issues including compensation for Korean victims of Tokyo's wartime forced labor.
Kim Sung-han made the remarks to reporters at Incheon International Airport on Sunday before departing for a five-day trip to the United States.
Kim said that if the two sides produce an important measure that will open a new era in bilateral relations, an official announcement will be made at an appropriate time.
As part of a possible deal on settling the issue, South Korea and Japan are reportedly considering creating a joint youth fund through major business organizations of the two nations.
The fund will reportedly be formed by South Korea's Federation of Korean Industries and the Japan Business Federation or Keidanren.
Kim said that the business circles and other sectors of the two nations are discussing on how they can contribute to help young, future generations of South Korea an Japan open a new era in bilateral relations and build up potential.
Kim left the door for the possibility of a summit between the two nations and the restoration of shuttle diplomacy, saying that if pending bilateral issues are resolved, the two nations are likely to see various and specific events for improving ties.