South Korea this week moved a step closer to holding a grand prix.

The state government and the opposition party both passed the 'F1 Act' supporting the construction and management of the circuit.

The legislation is historic in Korean politics as it is the first time such an act has been created in support of motor sport.

The government will provide the funds to finish the construction of the track sited in Yongam in the South Jeolla province beyond the finances already raised through private investment.

Young-Cho Chung, CEO of race promoters Korea Auto Valley Operation, said: "With the passing of the F1 Act and the construction of the circuit well above its progression rate, the dream of having an international motor sport circuit has become a reality for the motor sports community.

"By maintaining strong co-operative relationships with the central government and with the support on a national level we will do our best to make the 2010 F1 Korean Grand Prix an event of unprecedented success."

Although the Korean officials are talking of a race next year, it was not on the provisional calendar that emerged last month.

Formula One supremo Bernie Ecclestone and the World Motor Sport Council are due to announce the official calendar in October.