The South Korean government signed a memorandum of understanding with U.S. multinational conglomerate General Electric for increased cooperation in the heavy industry sector and with small-sized companies, the industry ministry said Wednesday.

Under the deal signed with the Ministry of Trade, Industry and Energy, GE will carry out bilateral projects that entail increased investment and joint research, the ministry said in an e-mailed statement.

The deal follows a meeting between President Park Geun-hye and GE Chairman Jeffrey Immelt in October.

GE is mulling building a plant to produce blowout preventers, a key part of drillships, in South Korea that hosts some of the world's leading shipbuilders like Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co.

The blowout preventers are safety devices used to prevent uncontrolled flow of liquids and gases during well-drilling operations.

In December, the company clinched a preliminary deal with the ministry and Gyeonggi provincial government to build a plant in Seongnam, a city near Seoul, to manufacture diagnostic devices for breast cancer by spending about 200 billion won ($187.6 million) over the next 10 years.

As part of efforts in executing the deals, GE will meet with South Korean small- and mid-sized companies and discuss ways for them to use its brands and patented technologies, officials said. (Yonhap)