Korea Trade Insurance Corporation (K-SURE) has agreed to financially support overseas investment and development projects by Korea Land & Housing Corporation (LH), in a deal that could also open doors for other local firms, Yonhap News reported.

K-SURE will prioritize offshore insurance covers in the business agreement, which was signed on Thursday (September 24), including an “overseas investment insurance” package to reduce investment risks of companies operating in LH’s industrial complexes, and “foreign business finance insurance” that supports low-interest long-term financing for overseas projects.

The agreement is expected to boost LH’s overseas investment development projects, and will create more opportunities for domestic companies that partner with the firm in securing offshore projects. One opening will be large-scale overseas Social Overhead Capital projects directly promoted by LH, such as the construction of smart cities, which will be available for participation by South Korean firms.

K-SURE and LH are discussing ways to cooperate in overseas investment development projects like the construction of cities in Vietnam and industrial complexes in Russia. They will also work together to identify promising new projects and strengthen their partnership by sharing information on the status of major projects and global networks.

“A breakthrough is needed, as overseas orders are shrinking due to the global economic slowdown and falling international oil prices,” said Inho Lee, the chairman and president of K-SURE. “We will try our best to support trade insurance to revitalize overseas investment development projects and help domestic companies.” (Reporting by Hyewon Chang)