One of Korea's state-run policy lenders announced Monday that it will provide $44.6 million to Mongolia to help upgrade its transport system.

The Export-Import Bank of Korea said it will use $25 million of its economic development cooperation fund to replace aging buses with new ones in Mongolia and use another $19.6 million to build classrooms equipped with information and communications technology, and develop digital textbooks.

The bank said its projects in Mongolia could help Korean firms expand their presence in the central Asian country.

On Sunday, the two countries signed a pact under which Korea will provide to Mongolia 170 buses built by South Korean firms in the form of loans from the economic development cooperation fund meant to support developing countries.

The pact was reached during President Park Geun-hye's visit to Mongolia. (Yonhap)