The Republic of Korea (RoK) and China are holding diplomatic consultations to settle a dispute over the sinking of a Chinese trawler after it collided with an RoK coastguard vessel in the Yellow Sea.

Seoul and Beijing have agreed through diplomatic consultations that the latest incident should not damage relations, the RoK Foreign Ministry’s spokesperson said.

Both governments shared the stance that the situation should be managed almly and quickly with appropriate and fair measures, according to the spokesperson.

They also agreed that the incident should be dealt with "cautiously” so as not to incite emotional public reactions in their own countries.

The 63-tonne fishing boat capsized on December 18 after it rammed into the 3,000-tonne coastguard ship. One Chinese fisherman died and three others were seized by the RoK coastguards.

The diplomatic dispute broke out after China demanded that the RoK pay compensation for the fishing boat and punish the coastguard personnel involved./.