South Korea and Israel have agreed to jointly develop an amphibious drone as part of their cooperation in financing research and development projects, the trade ministry here said Monday.

The Ministry of Trade, Industry and Energy, and the Israeli Ministry of Economy held a meeting on industrial development in Israel to discuss ways to operate a $45 million fund that the two countries created in 2001 to support information technology and energy.

The fund has financed 99 researches co-operated by South Korean and Israeli firms for the past 15 years, with 23 projects out of 63 completed operations commercialized.

Under the latest agreement, South Korean firm Keva Drone Co. and Israel's Aerodrome will carry out a joint research to develop an amphibious drone and help each other tap into the global commercial drone market.

"Israel is one of the leading countries in the drone development and artificial intelligence sectors," the ministry said. "It is important to seek strategic partnerships with global powerhouses in order to foster new industrial technologies." (Yonhap)