South Korean President Lee Myung-bak and Paraguayan President Fernando Lugo Mendez agreed to expand economic ties during summit talks Tuesday, Lee's office said.

Noting deepening cooperation since the two countries established formal diplomatic relations 50 years ago, the two leaders discussed further expanding ties in areas including trade, investment and development.

Lee called for Lugo's support for South Korean firms based in Paraguay and expressed appreciation for his presence at the Yeosu Expo to commemorate the Paraguay National Day.

The Paraguayan leader, noting the two countries have successfully worked together in agricultural and forestry sectors, voiced hope for South Korea's investment into his country and further development cooperation.

Lugo, whose three-day stay marked his second Seoul tour, is to return home later in the day.