Construction Mutual Aid Association signs overseas guarantee deal with Bank of Hope

The Construction Mutual Aid Association has agreed to partner with Bank of Hope, the largest Korean-American bank in the United States, to provide overseas construction guarantee support for South Korean builders entering the US market.

The association signed the MOU at Bank of Hope's US headquarters on Nov. 4, it announced Thursday.

Under the agreement, the association plans to work with Bank of Hope to provide optimal financial support — including the issuance of counter-guarantees — for South Korean construction companies securing contracts of various types in the US market.

The move comes as tariff negotiations with the Donald Trump administration last year locked in $350 billion in South Korean investment commitments to the United States, with shipbuilding, energy and other sectors beginning to act on those pledges this year, making financial support for South Korean builders looking to enter the US market an urgent priority.

The association envisions combining its expertise in overseas construction guarantees with Bank of Hope's financial network across the United States to deliver a one-stop financial solution tailored to the needs of Korean builders operating locally.

Bank of Hope, founded in 1980, ranks among the top 100 banks in the United States and operates a nationwide branch network, making it the largest Korean-American bank in the country.

The association has been actively expanding its overseas guarantee business since 2014. It currently supplies roughly 1.7 trillion won ($1.27 billion) in overseas guarantees annually through more than 30 global banks. "Through this agreement, we will accelerate our efforts to provide an even higher level of financial solutions, particularly for South Korean construction companies entering the US market," an association official said.

Meanwhile, the association has been pursuing company-wide operational innovation this year using AI technology.