Officials from South Korea and the US say they are close to an agreement on a beef import deal that has triggered mass protests in Seoul.
South Korean President Lee Myung-bak has announced he is replacing seven top aides, following public outcry over a beef import deal.
South Korea wants the US to agree not to export beef from cattle aged over 30 months, in a bid to ease public concern over mad cow disease.
Mr Lee said the decision to replace his chief of staff and six senior secretaries was aimed at giving his administration a fresh start.
After a week of talks in the US, the two sides said that they were nearing a mutually acceptable way forward.
Support for the new government has plummeted over its decision to resume imports of US beef.
South Korea's government hopes a deal will defuse public anger on the issue.
Protesters say the deal fails to protect them against mad cow disease.
Protesters say the decision in April to resume US beef imports - suspended in 2003 after a case of mad cow disease - fails to protect their health.
In a bid to defuse public anger, South Korea has asked the US to agree not to export beef from cattle aged over 30 months - which are thought to carry a higher risk of BSE.
Support for President Lee Myung-bak and his government has nosedived over the issue.
Late on Thursday, the two sides said they were close to a mutually-acceptable agreement on the issue, after a week of talks in Washington.
'Progress'
South Korean Trade Minister Kim Jong-hoon and US Trade Representative Susan Schwab have held several meetings over the last week in a bid to defuse the crisis.
South Korea's foreign ministry said "considerable progress was made and both sides neared mutually satisfactory results" at the talks.
Q&A: S Korea beef protests A spokeswoman for the US side, meanwhile, said the two sides were "close to reaching a mutually acceptable path forward".
The envoys will now report back to their respective governments for further consultations, the South Korean statement said.
On Thursday, Mr Lee said he was "deeply sorry" for ignoring public concern over the beef deal.
In a televised address, the new president said he had backed the deal to help secure passage of a bilateral free trade agreement that would boost South Korea's economy.
He promised that "US beef older than 30 months will not be put on our dinner tables as long as people don't want it".
Older beef is thought to be at greater risk of BSE.
On Thursday, President Lee Myung-bak apologised on televisionSouth Korea has seen weeks of street demonstrations and candlelight rallies over the issue. Scores of people have been arrested in occasionally violent clashes.
But the number of protesters has begun to fall since Mr Lee's government said it would seek import limits.
This is not the only problem troubling the president, though. His administration is also facing paralysing strikes from long-haul lorry drivers, construction industry workers and members of the militant Korean Confederation of Trade Unions, who oppose his plans for privatisation and pension reform.
Mr Lee could also face a backlash over worsening economic conditions.
When he took office, he vowed to bring economic growth - but instead the country is battling a global downturn and surging inflation.
