The two prime ministers witnessed the signing of agreements after an informal meeting. The two leaders were later joined by their respective delegations for formal talks that covered wide-ranging issues of bilateral interest and regional and international issues including Pakistan-India relations, Afghanistan, terrorism and nuclear proliferation.
Under the agreement, EDCF will provide about $18 million in soft assistance for the construction of 220kv grid station in Lahore.
Minister of state for economic affairs Hina Rabbani Khar and Korea's Exim Bank chairman inked the agreement on EDCF facility from their respective side while foreign secretary Riaz Muhammad Khan and Korea's vice foreign minister singed the cultural agreement.
During the formal talks, Prime Minister Shaukat Aziz briefed the Korean side on Pakistan's efforts for peace in South Asia and the ongoing peace dialogue with India to resolve all outstanding issues, particularly the Kashmir dispute.
Prime Minister Shaukat Aziz also expressed Pakistan's support to the six-party talks on North Korea's nuclear programme, saying Pakistan desired to see a nuclear-free Korean peninsula.
The South Korean leadership praised efforts by Pakistan for ensuring peace and stability in South Asia and assured all possible supports of his country in its endeavour for development and prosperity.
The two sides discussed ways and means to promote ties between the two countries and enhance co-operation in trade and economic fields.
Prime Minister Shaukat Aziz briefed his Korean counterpart on recent gains that Pakistan's economy has achieved as a result of wide-ranging structural reforms in all sectors of economy. He said Pakistan was looking for increased investment from Korea as the country offers best investment opportunities in various areas. The Korean investors must benefit from the country's excellent investment-friendly regime, he added.
Pakistani side also proposed revival of joint economic commission of the two countries, which held its last meeting ten years ago. It was proposed to initially start the forum at the minister of state level.
Prime Minister Shaukat Aziz said it would help to have institutionalised mechanism for enhancing economic and trade ties.
He said Pakistan also asked the Korean government to include Pakistan in its review of visa policy for other countries that would lead to more interaction at different levels between the two countries.
Initiation of air links between the two countries also came under discussion.
Federal education minister Lieutenant General Javed Ashraf Qazi (Retd), health minister Naseer Khan, communications minister Shamim Siddiqui, minister of state Senator Tariq Azeem Khan, minister of state for economic affairs Hina Rabbani Khar, EPB chairman Tariq Ikram, foreign secretary Riaz Muhammad Khan and secretary commerce Asif Shah assisted the Prime Minister in talks.
The Korean Prime Minister was assisted by members of his cabinet.
Prime Minister Shaukat Aziz said stronger interaction between private sectors of Pakistan and Korea would further strengthen economic ties between the two countries.
Speaking here at a banquet hosted in his honour by his Korean counterpart, Lee Hae-Chan, he said Pakistan with liberalisation of its economy and attractive incentives provides an investment-friendly environment.
He said vast opportunities were available in Pakistan for the Korean investors in many diverse areas.
Prime Minister Shaukat Aziz praised "Korea's miraculous economic transformation" and said it was a source of strength and pride for Asia.
The Prime Minister said he had very useful and constructive exchange of views with the Korean leadership on a wide range of issues.
The Korean Prime Minister appreciated Pakistan's economic growth and attributed it to the dynamic policies pursued by the government.
He was appreciative of the strategy of Enlightened Moderation of President Musharraf and also noted the role Pakistan was playing in the war against terrorism.
Prime Minister Shaukat Aziz on Thursday visited the national military cemetery that was constructed to adore the outstanding loyalty and spirit of heroism displayed by patriots and soldiers to sacrifice their lives for their country and people.
Accompanied by Begum Rukhsana Aziz and his members of entourage, the Prime Minister laid wreath at the memorial tower and observed one-minute silence to pay homage to the soldiers. He also signed the visitors' book.