South Korean President Lee Myung- bak and Australian Prime Minister Julia Gillard reiterated Monday their resolve to conclude negotiations for a two-way trade pact, Lee's office said.

"The leaders agreed that negotiations on an Australia-Korea free trade agreement were now in their final stage and reaffirmed their joint goal to conclude the negotiations this year,"a joint press statement said.

Gillard urged a prompt resolution of the trade negotiations in her meeting with local businessmen a day ago. The two countries began the first round of negotiations in 2009.

The two sides also held discussions over a wide range of issues including security, trade, energy and bilateral cooperation in the international arena, according to the statement.

The Australian leader arrived in South Korea last Saturday for a three-day visit marking the 50th anniversary of the establishment of diplomatic ties between the two countries and the 60th anniversary of Australia's participation in a historic battle during the 1950-53 Korean War.