BEIJING (Yonhap) -- South Korea and China can conclude bilateral free trade negotiations in two years if both sides find a compromise on "sensitive issues" for each other, such as agricultural and fishery products for Seoul, President Lee Myung-bak said in an interview televised Saturday.

Earlier this month, Seoul and Beijing declared the launch of government-level negotiations to forge a bilateral pact to free up trade between the two of Asia's biggest economies. The first round of talks are expected to take place later this month.

The announcement raised concern South Korea's farm and fishery sectors could take the brunt of free trade with China, with cheap Chinese products flooding local markets. Officials in Seoul said they will try to ensure to get farm products to be treated as exceptions to protect local farmers.

"We have high expectations from the perspective that the two countries should forge an FTA," Lee said in an interview with China's CCTV station broadcast Saturday. "Should an agreement be reached on sensitive issues, I believe it won't be difficult for the two countries to forge an FTA within two years."

Sensitive items for South Korea include agricultural and fishery products as well as products manufactured by small and medium-sized firms, Lee said, stressing that if the sides can reach compromises on these items and conclude negotiations, (a Korea-China) FTA can "produce greater outcomes than any other FTAs."

Lee arrived in Beijing on Saturday for annual summit talks with Chinese and Japanese leaders that are expected to focus on how to reduce tensions over North Korea and boost economic and other cooperation between the three countries. The interview with CCTV was recorded in Seoul earlier this week.

China, which has a gross domestic product of $7.3 trillion, is the world's second-largest economy and South Korea's top trading partner. Two-way trade reached $220.6 billion in 2011, far exceeding $100.8 billion for the United States and $103.1 billion for the EU.

Policymakers claim if an FTA with China is reached, it could help the national economy grow by 0.95-1.25 percent five years after it goes into effect, with numbers going up 2.28-3.04 percent in 10 years.

In the interview with the Chinese television, Lee said that relations between South Korea and China are "in the best shape ever" not only in the economic sector, but also in education, culture, people-to-people exchanges and other areas as well.

Lee said there are some "sensitive issues," but he believes they can be overcome. Lee did not elaborate on the "sensitive issues," but they are believed to be referring to rows, including one over exclusive economic zones between the two countries.