People themselves have good relationships with each other.
ーEven though Japan and Korea don't really get along as countries, Japanese and Korean people seem to get along just fine.
「日本と韓国は国としては仲良くないが、日本人と韓国人は普通に仲良くやっている。」
get along で「仲良くする・仲良くやっていく」
just fine で「普通に」
ーThe Japanese and Korean governments don't have great relations with one another, but the people themselves have good relationships with each other.
「日本と韓国政府はお互いに素晴らしい関係にないが、人自体はお互いに良い関係を持っている。」
government で「政府」
have great relations で「素晴らしい関係にある」
have good relationships with で「…と良い関係にある」
ご参考まで!