SEOUL, May 26 (Yonhap) -- South Korea and China can conclude free trade negotiations in two years, and the deal can be expanded to include Japan, President Lee Myung-bak said in an interview broadcast Saturday, stressing the ambitious three-way trade pact can be reached earlier than expected.

The three countries agreed earlier this month to launch free trade negotiations this year. The ambitious pact, if realized, would create one of the world's largest markets as South Korea, China and Japan account for 20 percent of the global gross domestic product (GDP) and 17.5 percent of all global trade.