Korea International Cooperation Agency (KOICA) said in a statement it is the commitment of the Korean government to promote poverty reduction and sustainable economic and social development of Nepal, as well as to strengthen the friendly relation between the two countries.

Finance Secretary Suman Prasad Sharma and South Korean Ambassador to Nepal Choe Yong-jin signed the agreement.

In 2010, Korea enlisted Nepal as one of its priority countries for development cooperation. “Now with the signing of Framework Agreement, it is expected that the existing cooperation will further strengthen with the increased mutual trust and friendship between the two countries,” KOICA said.

Stating the Korean embassy is commemorating 40 years of diplomatic relation between Nepal and Korea this year, KOICA said the signing of the agreement shall be one of the important milestones in strengthening diplomatic ties between the two countries.

KOICA is currently working in three priority sectors—health, vocational education, and rural development—in Nepal and it has spent $72.36 million in grant in the period between 1991 and 2013.

Korea had started its development cooperation to Nepal since 1976.