President Park Geun-hye held summit talks with visiting Lao President Choummaly Sayasone on Friday, where they agreed to expand development aid for wider Korean advancement into the natural-resource-abundant Southeast Asian country.

This was the first visit by the president of Laos to South Korea since the two countries rekindled diplomatic ties in 1995. The relations, initially forged in 1974, were severed in 1975 upon Laos’ communization.

The two leaders agreed that mutual cooperation would further prosper by enhancing the synergy between Laos’ abundant natural resources and Korea’s advanced technology and development experience.

To secure a financial support base for Korean companies entering the Lao market, the two countries signed agreements on credit and grant-type assistance including the Economic Development Cooperation Fund worth $200 million from 2014 to 2017.

The summit is also expected to spur participation of Korean companies such as Korea Water Resources Corporation and POSCO in Laos’ hydroelectric power generation, Cheong Wa Dae said. Laos is currently operating 21 hydroelectric power stations and is planning to build 69 more.

Currently, Korea Western Power Co. and SK are participating in construction of the Sepian-Senamnoi hydro power plant for electricity exports to Vietnam and Thailand, the office explained.

Korean businesses have also joined the exploration of Laos’ minerals such as gold, copper, iron and zinc. While Laos has rich minerals, exploration remains limited due to insufficient infrastructure.

The two countries are also set to cooperate in preserving Laos’ Vat Phou and associated ancient settlements within the Champasak cultural landscape.

With the Korea-Laos talks, Park has successfully held summit meetings with eight of the ASEAN member countries within her first year in office, Cheong Wa Dae noted.

By Lee Joo-hee (jhl@heraldcorp.com)