"Korea Eximbank (KEXIM) will provide the lion share of $8 billion of funds to Iran. The rest of the funds $5 billion will be provided by Korea Trade Insurance Corporation in the coming weeks," the Persian-language Sharq newspaper reported.
It said that Iranian Economy Minister Ali Tayyebnia will travel to Seoul soon to finalize the procedures for Iran to receive the loan.
Iran and South Korea have also agreed on the construction of a hospital.
The allocation of the $13-billion credit line by South Korea to Iran would open the way for Japanese and European banks to do the same with the country.
South Korea announced in May that it had prepared a package of loans worth a total of $25 billion for the development of Iran’s infrastructure projects.
The announcement was made during a visit to Tehran by South Korea’s former president Park Geun-hye.
During her stay in Tehran, president Park oversaw the signing of over a dozen agreements between Iran and South Korea to boost cooperation in areas such as energy, power, auto industry and railway section.