South Korea and Qatar are moving to join forces in making inroads into construction markets in third countries by utilizing sovereign wealth funds of the Middle East, Seoul officials said Thursday.

The Ministry of Land, Transport and Maritime Affairs said it will sign a memorandum of understanding with the Qatar Investment Authority in May in a bid to expand joint investment in overseas construction projects.

The envisioned MOU is a follow-up on a bilateral agreement that calls for the Qatari sovereign wealth fund to help finance overseas construction projects secured by South Korean builders.

The joint investment project involves the Qatar Investment Authority and Global Infrastructure Fund of Qatar as well as South Korean builders Samsung C&T Corp. and Hyundai Construction & Engineering Co.

Seoul has proposed to Qatar that both sides jointly participate in two pilot projects, the construction of a road in Ghana and a coal terminal in Indonesia, the ministry said, adding Qatar has started reviewing the offer.

The ministry said the deal would help South Korean construction companies break away from the traditional win-and-build method and drastically expand their investment and development projects by tapping into Middle Eastern wealth funds.

The planned MOU comes after Seoul signed a similar deal with the United Arab Emirates on Tuesday, asking the UAE to allow South Korean builders to participate in massive airport and subway projects in Abu Dhabi. (Yonhap News)