South Korean President Park Geun-hye is to hold talks with her Iranian counterpart, Hassan Rouhani, on Monday, a historic meeting that could set the tone for relations between the two countries.

It will be the first summit between the leaders of the two countries since the establishment of bilateral diplomatic relations in 1962.

South Korea is seeking to tap into business opportunities in Iran, which has emerged as a promising market following the lifting of international sanctions earlier this year.

More than 230 South Korean business executives and leaders have accompanied the president on her visit to the Islamic Republic to explore new business opportunities.

The U.N. lifted sanctions on Iran in a follow-up to a nuclear deal reached with the United States and five world powers over Tehran's disputed nuclear program.

Park and Rouhani are expected to discuss ways to boost economic cooperation as well as the situation on the Korean Peninsula and the Middle East in the second day of Park’s state visit to Iran.

South Korea is pushing to participate in large-scale infrastructure development projects in Iran meant to rebuild an economy that was hampered by international sanctions.

Also Monday, Park is set to meet with Iran's supreme leader Ayatollah Ali Khamenei to discuss how to boost relations between the two countries, according to South Korea's presidential office.

The trade volume between Korea and Iran stood at US$6.1 billion in 2015, compared with $17.4 billion in 2011. (Yonhap)