Myanmar and South Korea have signed a memorandum of understanding (MoU) on establishing sister cities relationship between Yangon and Bussan, the official daily New Light of Myanmar reported Friday.

The MoU on the establishment was signed by Yangon Mayor U Hla Myint and Bussan Mayor Hur Nam Sik at the Yangon City Hall after Sik had talks with Yangon Region Chief Minister U Myint Swe.

Bussan becomes the fifth city to establish sister city relationship with Myanmar's commercial hub of Yangon after Hangzhou, Kunming and Nanning of China and Ho Chi Minh city of Vietnam.

In October 2012, Myanmar president U Thein Sein paid a state visit to South Korea, the first to the East Asian country in 25 years.

In his visit to STX Shipyard in Bussan, Thein Sein invited the group company, which is the fourth largest ship builder in S. Korea, to invest in Myanmar's three special economic zones and make mutual cooperation in solar power generation for supply of electricity to rural areas, infrastructure development and dockyards.