Hana Bank Signs MOU with Machinery Equipment Construction Mutual Aid Association for 'Joint Overseas Construction Project Guarantee'

Hana Bank announced on the 8th that it signed a business agreement on "Joint Guarantee for Overseas Construction Projects" with the Mechanical Equipment Construction Mutual Aid Association at the Mechanical Equipment Construction Mutual Aid Association office in Cheongdam-dong, Seoul. Park Seung-oh, Vice President of Hana Bank's Credit Group (right), and Lee Yong-gyu, Chairman of the Mechanical Equipment Construction Mutual Aid Association, who attended the signing ceremony, are taking a commemorative photo.

[Asia Economy Reporter Kiho Sung] Hana Bank announced on the 8th that it has signed a business agreement with the Mechanical Equipment Construction Mutual Aid Association regarding 'joint guarantees for overseas construction projects.'

The Mechanical Equipment Construction Mutual Aid Association, one of the top three construction-related mutual aid associations in Korea, is a special-purpose mutual aid association established in 1996 under the Construction Industry Basic Act. It provides financial services such as guarantees, loans, and mutual aid (insurance) necessary for the construction industry, and has been offering direct guarantee services related to overseas guarantee projects since March.

Through this agreement, Hana Bank and the Mechanical Equipment Construction Mutual Aid Association have agreed to actively support guarantees related to overseas construction projects necessary for the overseas expansion of association members.

Previously, the indirect method was used, where domestic banks reissued guarantees for overseas sites secured by the Mechanical Equipment Construction Mutual Aid Association's guarantee certificates. However, with this agreement, the Mechanical Equipment Construction Mutual Aid Association will directly issue guarantee certificates through SWIFT message dispatch to Hana Bank's overseas branches and local subsidiaries, enabling faster and more simplified guarantee support.

Additionally, Hana Bank will share its know-how accumulated over a long period in issuing overseas guarantee certificates based on its diverse global network, and the Mechanical Equipment Construction Mutual Aid Association will cooperate in various fields such as sharing information on overseas construction sites requiring guarantee issuance.

A representative from Hana Bank's Credit Planning Section stated, “We will continue to cooperate with the Mechanical Equipment Construction Mutual Aid Association to actively support overseas construction projects related to ESG (Environmental, Social, and Governance), such as wind power and tidal power generation.” He added, “We will do our best to actively practice Hana Financial Group’s ESG management through various activities and support in the future.”

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