Seoul, May 10 (IANS): The industry ministry here said on Friday that it has signed a memorandum of understanding with Airbus SE for the European aerospace giant to launch a new research and development (R&D) centre in South Korea.

Industrial Policy Director General Lee Seung-ryeol reached the agreement during his meeting with Francisco Segura, the chief operating officer at Airbus Defence and Space, in Seoul, according to the Ministry of Trade, Industry and Energy.

The envisioned International Technology Center came after South Korea formally asked the defence and space arm of Airbus to establish an R&D centre in the country in November 2022, reports Yonhap news agency.

The new centre will serve as the platform to expand the cooperation between Airbus and South Korean firms in the civil aircraft and helicopter industries as well, it added.

Airbus plans to select the region for the new centre within this year.

The government and Airbus also discussed ways to expand bilateral ties in the aviation, space, and defence sectors, the ministry said.

"The Airbus ITC is expected to serve as the hub for South Korea's global cooperation in the aviation, space and defence sectors," Lee said.

"South Korea aims to promote ties with global R&D projects with Airbus, as the country intends to invest around 400 billion won $292 million) in the development of materials, parts and equipment in five major areas of defence, including in artificial intelligence, chips and space," Lee said.