Ukrainian Prime Minister Denys Shmyhal confirmed that Ukraine has received 100 million U.S. dollars in loans from South Korea.

He made the statement on Telegram on Friday, adding that the loan is "the first budget assistance" from South Korea to support Ukraine's social sector.

The prime minister also said the two sides signed an agreement early this year enabling Ukraine to attract up to two-point-one billion dollars in loans from South Korea.

The annual one-percent interest loan, with a 20-year maturity and a grace period of five years, will be offered through the Economic Development Cooperation Fund.

With Russia's war continuing into its third year, Ukraine has been supplementing around 60 percent of its state budget with overseas loans and grants.