Korea and Algeria seek to expand economic cooperation in the areas of petrochemical plant construction and military hardware, the Seoul government said Wednesday (Oct. 31).

The Ministry of Commerce, Industry and Energy said such cooperation could strengthen the countries' two-way trade that reached $1 billion in the first nine months of this year, up from $500 million during the whole of 2005.

"Discussions on petrochemical plant investment and wheeled armored vehicles are expected to make headway at the high-level talks planned for later in the day," said a ministry official without going into details.

He added that the meeting in southern Seoul between Vice Commerce and Industry Minister Oh Young-ho and Algerian Minister for Business Participation and Investment Promotion Abdelhamid Temmar could open doors for South Korean companies that want to build Algeria's second highway.

After a successful summit between their leaders in March 2006, the two countries have moved toward a "strategic partnership" that aims to help Algiers industrialize its economy and attract foreign investment.

In a contract that may be worth $4 billion, a Korean consortium led by Daewoo Engineering and Construction Co. has secured priority rights to build a modern city in Algeria.

Meanwhile, Samsung Electronics plans to produce 550,000 home appliances for Algeria starting in April.

Temmar, who arrived in Seoul on Tuesday with officials from 14 Algerian government agencies, also plans to meet Korean businessmen interested in investing in his country.

Algeria, which has 123 million tons of oil reserves, may help South Korean companies gain an important base of operations in North Africa.