South Korea and the Republic of Serbia have signed an agreement on the prevention of double taxation.

South Korea’s Ambassador to Serbia Lee Do-hoon said that Serbian Finance Minister Dusan Vujovic and he signed the agreement on Friday in Serbia.

South Korea’s Foreign Ministry expects the latest taxation agreement will contribute to promoting trade and economic exchanges between the two nations by reducing the tax burden on South Korean companies operating in Serbia.

The government will take steps to secure parliamentary ratification of the deal, which will take effect when the two nations notify each other that they completed due process for the effectuation under the Constitution.

South Korea’s trade volume with the European country reached 160 million U.S. dollars as of 2014.