South Korea and the United Arab Emirates signed a trade agreement to cut import duties and strengthen business and investment ties during a summit in Seoul.

The May 29 summit, attended by UAE President Sheikh Mohammed bin Zayed Al Nahyan, follows a state visit by South Korean President Yoon Suk Yeol to Abu Dhabi last year.

Abu Dhabi National Oil Company unit Adnoc Logistics & Services and Samsung Heavy Industries also signed a letter of intent for the construction of three liquefied natural gas carriers, with options for at least two more.

Each LNG carrier will have capacity of 174,000 cubic metres. The carriers are scheduled for delivery in 2028.

Adnoc L&S also signed a letter of intent for Hanwha Ocean to build three LNG carriers, also with an option for two more.

The value of the firm order for six vessels is around US$1.5 billion.

Also during the summit, the UAE reaffirmed a 2023 agreement for a  US$30 billion investment in South Korea, in areas ranging from nuclear power to hydrogen and solar energy.

Defence equipment contracts were also discussed. South Korea has ambitions to become the world's fourth largest defence exporter by 2027.