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Global Business

  • International Business
  • Reinsurance&Fronting
  • Overseas Network
  • International Organizations
  • Online Issuance & Confirmation

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> Global Business > International Business

International Business

In overseas business transactions such as construction projects or exports, companies are required to submit bonds underwritten by an insurance company or bank to win a contract. Most of the project owners will prefer bonds issued by an insurance company or bank from their native country. This is due to several reasons; not only is it difficult to judge the credit rating of a bond issuer from another country, but if a loss were to occur, many complications could arise in the process of requesting a claim for indemnity given the different taxation systems and laws.

While guarantees issued by local financial institutions and global banks are acceptable forms of security to most overseas project owners, due to the special nature of international contracts, such guarantee providers, local financial institutions and global banks, procedurally ask an applicant to submit a counter-guarantee or reinsurance from a financial institution within the geography of the applicant.

To meet these needs, SGI provides counter guarantees in cooperation with major local banks in the Middle East and North Africa (MENA)and Latin America which are key strategic regions for Korean construction companies. The company is also expanding its guarantee or surety services by offering reinsurance in cooperation with global insurance companies.

In addition, SGI is leveraging its network with other financial institutions worldwide through such international organizations as PASA and SFAA so that it can better pursue guarantee services for Korean companies that are expanding their business internationally. In line with this, the company joined the SWIFT™ (Society for Worldwide Inter-bank Financial Telecommunication) network in 2009, in order to provide more reliable and convenient financial services.

In addition, SGI has set up the Hanoi Branch in Vietnam, and representative offices in China, UAE and New York to secure a strategic base for global business.
The company is not only expanding international business exchanges with local banks and insurance companies but also collects crucial information about the economic trends and insurance markets of neighboring countries.

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