President Kim Do-jin of the Industrial Bank of Korea(IBK). (Photo: IBK)

The Industrial Bank of Korea said its net profit amounted to 1.764,4 trillion won in 2018, up 17 percent YoY, the largest in its history. The bank said it and its affiliates’ outstanding loans with SMEs came to 151.6 trillion won, up 6.5 percent YoY or 9.3 trillion won, sharing 22.5 percent of the total loans and credit outstanding extended to SMEs.

Its loan-loss provisions amounted to 1.455,3 trillion won last year, down 9.7 percent YoY, the lowest in the past three years.

It was the first time 11 years that the net profit exceeded the loan-loss provision.
President Kim Do-jin of the Industrial Bank of Korea declared that IBK should be a leading bank for SMEs by providing more loans to small- and medium-sized business firms. He made the remarks at a meeting of the bank’s local business unit heads held on Jan. 25 at the IBK Training Institute in Chungju, North Chungcheong Province.

The IBK CEO’s announcement meant that the bank will be a specialized bank for SMEs to gain a foothold to be a top bank in the country.

He went on to say that reforming the bank’s competitive power is the core of the bank’s operation in the future, adding that it should try to expand the gap with the rival banks in the area of the SME financing so that IBK can be reborn as a “super” financial institution in the country.

Attending the meeting included branch managers both at home and overseas totaling around 1,000 people to share the bank’s operational strategy and future vision in the new year.

Kim added that competition among financial institution will be tough and limitless and IBK has to be competitive to continue to its operation for the next 10 years amid a new paradigm in the financial community.

The bank has to find out what the customers want before they even ask and be prepared to adapt by reforming the organization to one that is centered on customer service.

The IBK CEO laid out four subjects to consider before providing loans; Digital reform: Completion of a digital core bank connected with outside channels. Strengthening Policy Loans: The development of tailor-made customer financial support through companion finance. Strengthening Risk Control: Boosting sustainable possibility through fair and just management. Strengthening the Role of Employees: Reform corporate culture by reforming the operational procedures.

Sideline events at the meeting included presentations of the Proud IBK Man Award and the IBK Masterpiece Branch Award, and a performance with flags for branch managers set to kick off their new year operations.

The state-run Industrial Bank of Korea (IBK) has gained approval for the acquisition of two banks in Indonesia, taking a step forward in expanding its business in Southeast Asia The lender said the Indonesian Financial Services Authority approved IBK’s takeover of Agris and Mitraniaga Bank. In November 2017, IBK signed a conditional agreement with Agris Bank to acquire a certain stake in the Indonesian bank.

It only took about a year to complete the takeover, and the state lender managed to acquire another bank at the same time.

“IBK is the first foreign bank to receive approval from Indonesia's financial authorities for acquiring two local banks at the same time.” IBK said in a press release.

“We believe the banks will create synergy in attracting more customers and expanding our business network in the region. IBK will continue expanding its global networks to help domestic firm.” entry into emerging markets.

IBK added it will immediately launch a merger process between the two Indonesian banks to establish IBK Indonesia by the end of the first half of this year Both banks have headquarters in the capital city of Jakarta and are listed to the local bourse.

Agris Bank has 23 business networks in Indonesia while Mitraniaga has 13.
Industrial Bank of Korea CEO Kim Do-jin Despite its relatively small size, Agris is licensed in the country to operate foreign exchange businesses.

Thanks to the license, IBK said it will immediately help Korean firms’ export and import businesses with Indonesian counterparts. IBK CEO Kim Do-jin has emphasized the importance of the bank's global business as its future growth engine since he came to the post.