The Industrial Bank of Korea (IBK) plans to support the further overseas advancement of SMEs, although they are in 162 countries now, up from just 84 before the financial crisis of 1998. Korean business firms have been hard at work and operate in all 229 countries on earth, falling back on the Korean tradition for overseas operations stretching as far back as the Silla Kingdom, the time of Admiral Chang Po-go, who dominated maritime trade in Northeast Asia in the 7th century.

But Korea’s international trade regressed to just cross-border trade in the Joseon Dynasty (1395-1910) with commerce taking a back seat to agriculture and manufacturing. But trade is back up now operating in 162 countries and true to the early traders nickname, “The Merchant of Kaesong in Venice.” 

IBK has been playing an important role in backing Korean companies’ overseas operations in line with the ideal that led to its birth, which is to give financial support to SMEs, especially for their advancement overseas. IBK built a global network to help SMEs abroad who have been struggling with various difficulties such as language, complex and strange financial regulations, and unkind attitudes in dealing with banks abroad. 

The bank opened additional outlets where many Korean firms are doing business and helped them through tie-ups with large foreign banks in the locations where it cannot easily set up their outlets so they may be able to get loans with lower costs. IBK also issued guarantees for SME borrowers on their loans from foreign banks, negotiating the interest rates on those loans for them with foreign lenders.

The bank also provided commercial information to those SMEs operating overseas so that they may get settled in the country in a short time and carry on with their operations. IBK has been able to extend its support to Korean firms through the MOUs signed with foreign banks.

About 50 SMEs who got such help from IBK expressed their satisfaction with the banking services. In a country like China, there are many Korean financial firms in operation, and many businesses could get financial help easily from them, but IBK provides help to SMEs through its tie-ups with foreign banks at locations where no Korean financial firms operate, which is a dream come true to many SMEs operating alone in those places.

One CEO recommends that other SMEs planning to go overseas check with IBK and see if they can get direct financial help from IBK or through its cooperative foreign banks. It is likely they can get help from IBK, as it has its own outlets or connections with foreign banks around the world.

As Machiavelli said 500 years ago in one of his famous books, “Don’t rely on destiny, but overcome it.” Korean companies have been opening new roads and overcoming  adverse situations in the face of uncertainties to beat their competitors and become pioneers. IBK will continue to provide support to SMEs advancing toward the world so that they may have the sharpest competitive power while growing as top business firms, which may be one of the reasons for IBK’s continued existence.