Renault SA on Tuesday confirmed Monday press reports that it would invest 600 billion won ($US571 million; €431 million) in its South Korean affiliate over the next three years.

Renault chairman Louis Schweitzer said the investment would allow Renault Samsung Motors to produce new petrol engines jointly developed with Nissan Motor, the Associated Press (AP) reported.

Renault Samsung Motors has a plant in Busan, a port city on South Korea's southeast coast, AP noted.

Schweitzer reportedly said Renault also plans to produce sport utility vehicles in the Busan plant as early as 2007 under the Renault and Renault Samsung brands.

According to AP, The official said Renault's new investments will help "develop Renault Samsung Motors as its hub in Asia," indicating that the French car giant will use its South Korean arm to expand in Asia, including the fast growing Chinese market.