South Korea and China have agreed to cooperate in infrastructure development in northeastern China, crucial for their policies of seeking closer economic ties between Asia and Europe, the finance ministry said Friday.

At the 14th ministerial meeting held at a Seoul hotel, Strategy and Finance Minister Yoo Il-ho suggested the joint infrastructure development project, and his Chinese counterpart Xu Shaoshi accepted the offer, the ministry said in a statement.

"The joint project is in line with the China-led 'One Belt, One Road' policy and the Eurasia initiative sought by Korea," Yoo said in an opening speech.

The One Belt, One Road initiative refers to the latest economic development strategy unveiled by Beijing, which intends to build infrastructure and trade links between Asia and Europe.

The Eurasia Initiative is a key part of Seoul's foreign policy agenda under which countries in Asia and Europe can draw closer together through increased economic cooperation.

Under the agreement, the two countries will expand a logistics center in Hunchun, in the far eastern part of China, and upgrade the port of Jarubino in Russia. They will also build roads and railroads that connect the logistics center and the port, the statement said.

The Hunchun logistics center was initially developed by POSCO and the Hyundai Group in a joint project. The two Korean companies have recently started a leasing business with the center, a ministry official said.

"The minister asked his counterpart to expand the Hunchun logistics center to accommodate a greater volume of the cargo coming from three provinces in northeast China -- Jilin, Liaoning and Heilongjiang -- in a joint project," the official said.

When it comes to Jarubino port development, China and Russia already signed an initial agreement, but they haven't entered into the project. Korea offered to help out with the port's extensive renovations. China welcomed the partnership with Korea in the two infrastructure projects, she said.

The port of Jarubino is located near Hunchun in northeastern China.

"Currently, most of the cargo from the three northeastern provinces are being sent to a distant port in Dalian. If the cargo can be sent to the Jurubino port for export, it will help China and Korea cut their logistics costs," she explained.

Meanwhile, the minister sought cooperation from China as Korea wants to host an annual meeting of the Asian Infrastructure Investment Bank next year.

The government has said the hosting of such an international event will contribute to improving Korea's status on the global stage and help its companies expand into global markets. (Yonhap)