The accord was signed during a Sunday meeting between Iran's Minister of Economic Affairs and Finance Ali Tayyebnia and the visiting South Korean Minister of Trade, Industry and Energy Joo Hyung-hwan.

The agreement is aimed at boosting the level of cooperation between Iran and South Korea in the field of economy to attract funds for infrastructure, development, and manufacturing projects in Iran via Korean banks, financial institutions and firms, Tayyebnia said during the meeting.

He added Korea Trade Insurance Corporation (K-sure) will provide funds worth a total value of €5 billion for the projects.

The Iranian minister further said the country is fully prepared to welcome Seoul’s investment in Iran’s auto industry as well as its tourism sector and its oil and gas projects.

Joo, for his part, called for the further expansion of economic and financial cooperation between the two countries, describing the Islamic Republic as a reliable trade partner.

He added that Seoul is resolved to start a new chapter of economic cooperation with Iran in the post-sanctions era.

There has been growing international interest in trade and banking ties with Iran since Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 finalized a comprehensive deal on Tehran’s nuclear program and implemented it on January 16.

The comprehensive nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions on Iran after coming into force.