South Korea has signed an agreement with Bermuda on the exchange of tax information.

South Korea's permanent mission to the United Nations says that Ambassador Kim Sook and Bermuda's premier, Paula Cox, signed the agreement on Monday in New York.

The mission states that Korea will now be able to prevent tax evasion, expose hidden assets and incomes at tax havens and impose penalties more effectively.

Bermuda is a major tax haven in the North Atlantic Ocean.