Industrial Bank of Korea (IBK) announced that it has acquired an official license from the State Bank of Vietnam (SBV) for the establishment of a local subsidiary and received a certificate of official license at the Korea-Vietnam Financial Cooperation Forum held in Vietnam on April 23.
This official license marks the final approval by local supervisory authorities for the establishment of IBK’s Vietnamese subsidiary, achieved after approximately nine years of licensing procedures.
This is a great achievement. It is particularly significant in that it has received approval to establish a wholly-owned local subsidiary of a foreign bank in Vietnam, where new licenses for local bank subsidiaries had been virtually suspended since 2017.
Diplomatic support from the Korean government and the Financial Services Commission, as well as continuous cooperation from the Korean Embassy in Vietnam played a major role in helping IBK finally obtain this license.
IBK is preparing to commence operations with the goal of officially launching its Vietnamese subsidiary this October.
Following the launch, the bank plans to expand its network centered on major industrial complexes and serve as a financial partner supporting Korean companies’ entry into the Vietnamese market.
“We were able to achieve the result of obtaining the approval thanks to support and cooperation at the pan-governmental level including the Korean Embassy in Vietnam, the Financial Services Commission, and the Financial Supervisory Service,” an IBK official said.
“As a policy financial institution, we will faithfully fulfill our role of establishing a support base for SMEs in Vietnam and backing economic cooperation between the two countries.”
AI & Management Innovation Camp’ to Strengthen AI Capabilities of SMEs
IBK announced that it will hold the AI & Management Innovation Camp from April 22 to 24 at the IBK Chungju Training Center in Chungju of North Chungcheong Province, to strengthen the artificial intelligence capabilities of key personnel at SMEs.
The AI & Management Innovation Camp is an educational program designed to cultivate innovation leaders by strengthening the capabilities of middle managers at SMEs in a short period of time.
The curriculum consists of experiential courses that can be immediately applied to practical work such as industry and market analysis based on generative AI, establishing HR strategies using AI prompts and data-driven decision-making practice.
IBK is helping companies that struggle with practical application or require additional support even after completing training to successfully integrate artificial intelligence into their business operations by linking them with AI ACT Consulting held on April 6.
“The ability to utilize artificial intelligence will become a competitive advantage for SMEs,” an IBK official said. “Through this camp, IBK will help SME leaders experience AI as a powerful tool for decision-making.”
500 Billion Won in Financial Support for Innovative Startups
IBK announced on April 24 that it signed a business agreement with the Korea Credit Guarantee Fund (KODIT) for financial support for the growth of innovative startups and the activation of productive finance.
Under this agreement, IBK will provide financial support totaling 500 billion won.
This agreement was signed to support startups with excellent technological capabilities struggling with fundraising as well as companies with big future growth potential in overcoming crises or difficulties in their business activities.
Under the agreement, IBK provides benefits to companies that have received guarantees from KODIT such as interest rate cuts of up to 1.5 percentage points and guarantee fee cuts of up to 0.5 percentage points.
IBK fostered 1,264 innovative startups through its startup incubation platform, IBK Changgong as of March.
It provides comprehensive support for the scale-up of startups, including investment and loans, consulting, investor relations (IR) shows and global expansion.
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