NEW YORK (Yonhap News) ― Korea signed a bilateral agreement Monday with Bermuda on the exchange of tax information which officials said would serve as a stepping stone for the improvement in the two countries’ relations.

South Korea proposed the Tax Information Exchange Agreement with Bermuda, known as a major tax haven in the North Atlantic Ocean, in 2009.

“This pact, the first between South Korea and Bermuda, will be an important starting point for the development of ties between the two sides,” said South Korea’s ambassador to the United Nations, Kim Sook, in a signing ceremony here with Bermuda’s premier, Paula Cox.

The ceremony took place during Cox’s visit to New York.

“The signing of the pact will make a more active financial flow that will be helpful to the economic growth of South Korea and Bermuda,” Kim added.

The premier also said it is expected to provide the two nations with significant opportunities for mutual direct investment.