A2 Milk to expand into South Korea market

The A2 Milk Company will enter the South Korea market, signing a promotion and distribution deal with pharmaceutical giant Yuhan Corp.

The A2 Milk Company has signed a deal with Yuhan Corp to help it expand into South Korea. (AAP)

The A2 Milk Company is expanding into South Korea after signing a distribution deal with pharmaceutical giant Yuhan Corporation.

A2 says South Korea is an attractive market because it has high per capita dairy consumption, world-class retailers and fast-growing online sales.

A2 MIlk says Yuhan Corporation has capabilities in pharmaceuticals and consumer goods.

"Yuhan Corporation is a long-established, highly credentialed and principled Korean business," A2 Milk chief executive Geoffrey Babidge said in a statement on Monday.

" We share similar values and ambitions, and with our complimentary capabilities believe that together we can build a meaningful business in Korea."

Yuhan and A2 will launch a range of dairy nutritional products sourced from Australia and New Zealand, with sales expected to start between July and December this year.

Shares in A2 Milk were 8.5 cents, or 0.7 per cent, higher at $11.68 at 1225 AEST on Monday.