South Korea and India agreed to provide a combined US$1.1 billion worth of financial support for their bilateral business cooperation, the finance ministry said.

The agreement was signed during the finance minsters' meeting held in central Seoul earlier in the day between the two countries, according to the ministry.

Under the agreement, both will provide the financial support through their own export-import banks over the next five years to companies seeking to join in infrastructure construction projects in India.

The move is especially aimed at helping companies interested in about $1 trillion worth of infrastructure businesses that India is pushing for under its mid-term economic development plan until 2016.

During the meeting, the ministry said that its officials asked their Indian counterparts to help South Korean companies participate in the five-year mega project. (Yonhap News)