Construction Guarantee Cooperative (CG), which was set up in 1963, is the first financial institution specialized in construction and played no small part in the development of construction industry. Its enormous capital strength, superb asset integrity, know-how in bond issuance all accumulated for last year 50 years, and a superior evaluation capability and compensation system enabled CG to be positioned as the most trustworthy financial institution specialized in construction for half a century.
CG has played a major role in developing the construction business in into the key industry of the country by supplying credit and capital resources in the form of guarantees and loans. Those were essential for the construction sector. CG is now expanding to the world market.
CG has been engaged in a wide variety of businesses including guarantees, loans, insurance, training centers and Sejong Field Golf Club.
Total guarantees issued in 2013 amounted to $308.1 million; $334 Million in the preceding year and $328.2 million in 2011, while total loans provided amounted to $46.8 million in 2013, $46.8 million in 2012 and $42.2 million in 2011.
CG’s main businesses included issuances of guarantees for bonds, contract bonds, and performance bonds. The cooperative also issued project performance bonds, execution of development and reconstruction bonds, advance payment bonds, subcontract payment bonds and maintenance bonds.
The guarantee is the most essential business of the cooperative, which is aimed to help construction projects be executed in mutual trust among contract parties and through its guarantee.
CG issues a guarantee to any of its members who signs a transaction contract. For construction equipment leases, a business is eligible for a part-guarantee.
CG provides overseas guarantees to meet growing demand from any member advancing into foreign markets, as overseas construction projects are increasing. CG issues guarantees pursuant to international standards in accordance with the project owner’s demands, and contents in the overseas construction contracts. The guarantees issued are delivered to the project owner through a SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfer or by other means.
CG is currently supporting members and thus saving their financial cost by providing a variety of loans necessary for their construction projects. CG offers lower interest rates than other financial institutions.
CG loans are provided for members’ construction projects with the executory receivables collateralized. Also, loans are provided for the purchase of materials, purchase or repair of construction machinery and equipment, and paying wages. Loans are also provided to purchase materials for the projects. CG also discounts bills that the member receives as construction costs that members actually engage. The loans have limits, including $1,297 for loan for execution, 1 million won for loan for materials and 1.05 million won for loan for operating on credit.
CG also provides protection against all types of risks likely to occur during construction works, such as calamity-like natural disasters and safety accidents, so that members may work at ease and focus on their continued growth.
Types of insurance include employee accident insurance, construction assembly work insurance, business indemnification liability insurance overseas worker’s casualty insurance, completed work insurance and personal safety insurance.
CG also operates claims adjustment centers in key regions in the country, including two in Seoul, Gyeongsang and the Jeolla regions. They give professional and systematic compensation service with expert staff members. They also handle disputes among construction firms, who are members of CG, to project owners. CG also provides credit evaluations of its members.
