The agreement came hours before South Korean President Lee Myung-bak was scheduled to meet with President Bush in Washington, CNN Money reported.

South Korea banned U.S. beef imports in 2003 over concerns about mad cow disease.

The ban was partly relaxed when South Korea allowed imports of young, boneless beef in April 2007, but tightened again in October of the same year, the report said.

To U.S. cattlemen and meat processors, the closing the South Korean market has been a $3.5 billion to $4 billion loss, Jim Herlihy of the U.S. Meat Export Federation said.