Line a 21 x 11 cm / 8 x 4-inch loaf pan with plastic wrap, leaving a few inches of overhang on the long sides.
Whisk the agar powder into the water in a 2-quart saucepan. Bring to a boil over medium heat, whisking often, then lower the heat and simmer for 2 minutes until the agar is fully dissolved, no gritty specks left when you rub a drop between your fingers.
Add the sugar and salt. Stir for about 1 minute until fully dissolved.
Reduce the heat to low. Add the red bean paste in two batches, whisking each addition in completely before adding more, until the mixture is smooth with no lumps.
Simmer gently for 3 to 4 minutes, stirring constantly, until the mixture turns glossy and coats the back of a spoon thickly.
Pour the mixture into the prepared loaf pan right away, agar starts to firm up within minutes of coming off the heat. Tap the pan on the counter a few times to pop air bubbles.
Cool at room temperature for 30 minutes, then cover and refrigerate for at least 2 hours, until firm and set. It should spring back gently when you press it, not jiggle loosely.
Lift the yokan out of the pan using the plastic overhang and set it on a cutting board.
Slice into 8 rectangles, about 2.5 cm / 1 inch thick, using a knife dipped in hot water and wiped dry between cuts for clean edges.