JP Morgan, one of the world's leading asset management companies, will launch a $1 billion fund to invest in green and eco-friendly industries in South Korea, Yonhap News Agency reported Wednesday, quoting Seoul officials.

The agreement was signed between South Korea's government and JP Morgan on the sidelines of summit talks between President Lee Myung-bak and U.S. President Barack Obama in Washington, according to the Ministry of Knowledge Economy.

Under the letter of intent, JP Morgan plans to form the so-called "green fund" to invest in South Korea's eco-friendly industries such as light-emitting diodes, solar power, wind power and other bio energy sources, the ministry said.

It added that JP Morgan will finance 30-40 percent of the fund from overseas investors and the remainder from those in South Korea, with a plan to launch the fund during the second half of this year.

South Korea is ramping up its drive for green growth aimed at achieving sustainable growth while minimizing consumption of energy and natural resources and reducing production of greenhouse gases.

On May 13, the government announced that it will invest 12 trillion won ($9.6 billion) over the next three to four years until 2012 to develop green technologies that are expected to create half-a-million jobs.

"JP Morgan delivered its intention to form the green fund to us in March as it viewed South Korea's eco-friendly industries as being highly promising," a ministry official said. "If it decides on details about where to invest, we will provide support to make sure the investments are made smoothly."