South Korea and Cuba have inked a high-level bilateral accord on an economy-related program, laying the groundwork for the launch of full-scale partnerships, Seoul's finance ministry said Friday.

The two sides signed the memorandum of understanding on sharing the Northeast Asian nation's experience in economic development in a ceremony held in Havana on Thursday (local time), according to the Ministry of Strategy and Finance.

It represents the first government-level MOU between the two countries, which have no formal bilateral diplomatic relations.

South Korea has provided Cuba with advice on economic policy since last year, but there has been a limit to broader cooperation.

"The signing of the MOU this time is meaningful in that it will clear the hurdle to the process of carrying out specific cooperation projects with Cuba," a ministry official said.

It is also expected to help South Korean firms do business in Cuba, he added.

South Korea plans to seek new joint projects in the renewable energy field starting next year.

Based on its experience in democratization and rapid economic growth, South Korea has operated a knowledge sharing program with a number of foreign countries. (Yonhap)