The Construction Guarantee Cooperative has activated a preemptive emergency management system to prepare for the possibility that the Middle East war and a potential closure of the Strait of Hormuz could undermine construction industry profitability and burden the cooperative's finances.
The cooperative said Thursday that it has been fully operating the emergency management system since the 11th of this month. Given that the construction industry relies heavily on oil-derived products such as cement and asphalt, a surge in oil prices could erode builders' profitability, and the resulting increase in guarantee payouts could directly affect the cooperative's operations.
The response system is designed around three pillars: performance management, guarantees, and liquidity management. The cooperative plans to implement phased countermeasures linked to stress tests analyzing crisis scenarios.
Decision-making will be led by the Financial Performance Management Committee, chaired by the executive director. The committee includes all division heads and the planning and coordination team leader, and will address key agenda items such as economic and financial analysis, financial target setting, and adjustment of crisis stages. A separate Emergency Management Support Task Force has also been established to provide operational support, taking charge of drafting detailed measures and overseeing their execution.
Support for member companies also began this month. Guarantee fee discounts are already in effect, and special loans for companies under funding pressure are being additionally prepared.
"The greater the uncertainty in the business environment, the more we will strengthen the safety net function of the construction industry to substantively support the management stability of our members," a cooperative official said.
