The Ministry of Science and Technology said Tuesday South Korea is working to finalize a memorandum of understanding (MOU) with Russia on building rockets for the placement of its satellites into orbit, following last month's bilateral agreement on cooperation in space development.

The proposed MOU will likely stipulate Russia's cooperation in the fields of engines and materials for the first domestically-made satellite-launch rocket named KSLV (Korean Space Launch Vehicle)-1.

The deal is set to be signed by South Korean President Roh Moo-hyun and Russian President Vladimir Putin in Moscow within the latter half of the year.