South Korean President Roh Moo-hyun announced yesterday that his country has recognized China's status as a market economy.

Roh made the announcement during a joint press conference with Chinese President Hu Jintao, who is in Seoul on a state visit.

Hu said that the recognition will strongly advance economic and trade cooperation between the two countries and promote the development of bilateral relations.

China is now South Korea's largest trading partner, with trade volume between the two countries expected to reach US$100 billion this year.

The two leaders agreed that bilateral trade should double to US$200 billion by the end of 2012.

In their two talks, the two leaders pledged to make joint efforts for the sustained development of the comprehensive partnership of cooperation between the two countries.

Hu said the two countries have entered into cooperation in all fields of endeavor and maintained close communicationn and coordination on international and regional issues.

He said Beijing and Seoul now share more common interests as their ties become more and more important.

Roh said Seoul attaches great importance to its relations with China and firmly adheres to the one-China principle.

He said his government will actively study the establishment of a free trade zone between the two countries, work for the expansion of cooperation between their enterprises and properly handle disputes arising amidst the rapid development of such cooperation.

Roh also hailed China's role in tackling the nuclear issue of the Korean Peninsula, and Hu reaffirmed Beijing's principled stance advocating a peaceful solution to the issue through dialogue and a nuclear-free Korean Peninsula.

After their meeting, Hu and Roh attended the signing ceremony of a number of bilateral documents on the promotion of trade and investment.