India and South Korea Tuesday agreed to deepen their bilateral engagement and expand cooperation in diverse areas, including economic relations, defence, security and science and technology.

In a meeting that lasted for over half hour, Prime Minister Manmohan Singh discussed the entire range of bilateral issues, focussing on investment, with South Korean Minister of Foreign Affairs and Trade Ban Ki-Moon here Tuesday.

"It was a very friendly, warm and cordial meeting. Dynamic growth has been observed in all sectors, including economic relations, commercial relations, defence, security, science and technology and investment," external affairs ministry spokesman Navtej Sarna said here.

Ban, who arrived here on a four-day visit Sunday, invited Manmohan Singh to visit South Korea. Manmohan Singh accepted the invitation and expressed admiration for South Korea's "transition from a developing to a developed country".

Manmohan Singh and South Korean President Roh Moo Hyun are likely to meet on the margins of the East Asia Summit in Kuala Lumpur in December.

Trade and commercial relations between India and South Korea are set to grow further with the two countries deciding to boost bilateral trade to $10 billion by 2008.

POSCO, a South Korean global city major and one of the largest producers of steel in the world, has signed a memorandum of understanding with the Orissa government for setting up an integrated steel plant with an investment of about $12 billion.

The two countries signed an agreement on visa exemption for diplomatic and official passport holders after the fourth India-South Korea joint commission meeting concluded here Monday. They also agreed to boost bilateral trade to $10 billion by 2008.

Seoul reaffirmed its plans to upgrade its consulate agency in Mumbai to consulate general this year and hoped for an early completion of the necessary procedures.

According to the minutes of JCM, two more pacts on "defence industry and logistics cooperation and on customs cooperation, have been agreed upon and these agreements will be signed shortly".

The flow of investment from South Korea has accelerated, resulting in a more South Korean companies coming to invest in India. The two countries have agreed to step up efforts to promote foreign direct investment.

The two sides agreed to hold the second meeting of India-South Korea Joint Committee on Investment Promotion in India later this year.

Ban also met Petroleum Minister Mani Shankar Aiyar to explore possible cooperation in the energy sector.