New Delhi, Jan 17 (IANS): India and South Korea Friday signed an agreement on digital signature for facilitating effective and efficient paperless bilateral trade and commerce.

As per the new deal, the two countries seek mutual recognition of digitally signed documents.

"This arrangement will further boost bilateral trade between the two countries and pave way for similar bilateral arrangements,” an official statement released after the signing of the agreement said.

Digital signatures are widely used in India and South Korea for various domestic applications relating to electronic governance, trade, banking, procurements and a host of other business and economic transactions.

However, a certifying authority recognised in South Korea is currently not recognised in India and vice-versa.

Hence, digital signatures created under regulatory regime in South Korea are not recognised as legally valid in India and vice-versa. This causes impediment to the best practices of international trade and commerce.

The new deal seek to remove these impediments.

Officials from the two countries signed a Memorandum of Understanding (MoU) in the presence of India's Telecom Minister Kapil Sibal and his South Korean counterpart Mun-kee Choi.

The South Korean minister and officials are part of a high-level delegation led by South Korean President Park Geun-hye.