South Korea and Iceland agreed Monday to strengthen cooperation on the Arctic region, Cheong Wa Dae said, a move that could help explore the northern polar route that holds large potential for cost and saving time for shipping companies.

The agreement was reached during the summit between President Park Geun-hye and her Iceland counterpart, Olafur Ragnar Grimsson, at the South Korean presidential office.

The two sides also agreed to push for a consultative meeting to discuss their policies on the Arctic region, beginning next year, the presidential office said.

Iceland is a member of the Arctic Council, which sets the rules for development of the polar region believed to have large untapped reserves of oil and gas.

In 2013, South Korea gained permanent observer status on the council, a move that allows Seoul to secure a bigger say in the intergovernmental gathering.

Currently, South Korean ships use the conventional shipping route through the Indian Ocean and Suez Canal to reach Europe, a journey that takes about 40 days.

In comparison, Arctic routes can lower the duration of travel by about 10 days, cutting shipping costs.

Maritime experts have said that it may take time before any commercial sailing is conducted as the routes can only be used between July and October and vessels need help from icebreakers.

But Arctic routes are expected to be available all year round by 2030 as ice in the region continues to melt due to climate change. (Yonhap)