South Korea is reportedly looking to participate in the European Union's(EU) military procurement loan scheme worth 150 billion euros, or around 176 billion U.S. dollars.

According to the European Commission, Seoul recently submitted a formal request for South Korean industries to join the bloc's Security Action For Europe(SAFE) military procurement loan scheme, in exchange for a financial contribution.

SAFE was launched to assist EU member states by offering low-interest loans when they procure arms, and foreign suppliers limited to 35 percent of contract value.

Countries that have forged security and defense partnerships with the EU, such as South Korea, or those whose candidacy for EU membership is being reviewed, could win an exemption if they reach a separate bilateral deal with the Commission.

The EU executive is expected to review the request, before deciding whether to make a formal recommendation to the European Council to open negotiation.