The Korea Trade Insurance Corporation said Thursday that it had signed a memorandum of understanding with the Korea Land and Housing Corporation to help South Korean companies secure more overseas construction projects.

Under the deal, the state-run trade insurance firm will provide overseas business financing insurance and various trade insurance products to LH and partner companies bidding for overseas construction orders, which will help the builders minimize losses from offshore investments. 

The move is designed to foster public-private partnerships for overseas construction projects, arrangements in which a government agency and a private entity share investment risks and management responsibilities. 

“Korean builders’ overseas construction orders have slowed, mainly due to the COVID-19 pandemic and subsequent global economic slowdown.

Through a series of trade insurance services, K-sure will make all-out efforts to aid local firms’ overseas development businesses,” said Lee In-ho, president of K-sure. 

Meanwhile, the two state-run corporations have been mulling cooperative action to promote investment and development projects in Vietnam and Russia. For instance, to identify promising development projects overseas, they agreed to share information on overseas construction and engineering projects and global networks, forming a strategic partnership.

By Choi Jae-hee (cjh@heraldcorp.com)