South Korea and the European Union have signed an agreement to improve cooperation on issues relating to competition policy.

The agreement was signed by Chairman of the Korean Fair Trade Commission, Kang Chul-kyu and the E.U.'s competition commissioner, Mario Monti, in Brussels on Thursday.

Monti told reporters that the initiation of a structured dialogue in competition marks an important step in the advancement of relations between the European Union and South Korea.

According to the European competition commission, the primary objective of the agreement is establishing "a permanent forum of consultation, transparency and cooperation between Korea and the E.U."

Under the accord, both parties will hold regular meetings to address the legal framework relating to anti-trust and state aid problems, as well as exchange their respective experiences with individual case developments in competition policy.

The commission said that high-level meetings will take place at least once a year.