Cisco Systems Inc plans to set up a research center in South Korea and invest or lend $500 million in the country's technology and telecom sectors, the Korean presidential office said on Tuesday.

The presidential Blue House estimated Cisco's investment in the urban planning research center and related projects to exceed the $1.1 billion the company previously invested in its Indian research complex, but did not specify a time frame.

Cisco Chief Executive John Chambers met South Korean president Lee Myung-bak on Tuesday.

In the city planning area, the U.S. network equipment maker would provide technologies for energy saving and urban management, according to the Blue House statement.

In a separate project, Cisco would invest or lend about $500 million in South Korean telecom operators and technology infrastructure over the next five years, it said.

Cisco is also planning to raise $40 million or more in a fund to invest in Korean technology ventures, the Blue House said.

Cisco declined to comment on the statement.

(Reporting by Rhee So-eui and Marie-France Han; Editing by Nick Macfie)