...Important Policy Role: The Insurer Financial Strength (IFS) Rating on Construction Guarantee (CG) incorporates a two-notch uplift from its standalone credit quality to reflect its perceived market importance and the high likelihood of state support, given CG's policy role in the construction industry. South Korea's (AA-/Stable) Ministry of Land, Infrastructure and Transport (MoLIT) directly supervises CG, which provides guarantees, insurance and loans mainly to general construction companies. CG supports the construction sector under the state's direction by offering aid to financially vulnerable companies and introducing products to preserve sector stability. Capital Buffer Absorbs Shocks: CG's guarantee exposure/capital was about 24.8x at end-2025, below the regulatory limit of 30.0x. Total capital remained above KRW6.5 trillion. Its large capital base funds operations without external borrowings or explicit government support. CG introduced a completion guarantee in 2025 to support construction...
