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

The Industrial Bank of Korea (IBK) has decided to focus on major cities around the world where SMEs are trying to explore for their overseas operations such as New York, London, Tokyo and Hong Kong.

The state-run bank has been providing financial support to the SMEs as per its founding ideal to assist financially so they can help the national economy grow while creating jobs.

President Kim Do-jin has been pushing the strategy for the development of the Asian Financial Belt ever since his inauguration as the CEO of the bank in 2017. He pledged to visit all of the bank’s overseas branches before his term in office is up.

He has already toured a number of key branches in Asia, including those in India, Vietnam, Cambodia, the Philippines and Myanmar to assess how they are doing regarding the Asian Belt strategy. He wants to develop a financial market for the bank in the Asian region before further exploration of the rest of the world, North America and Europe.

IBK has 28 branches and other outlets in 12 foreign countries as of the end of 2018 with the professionalism for extending financial support to SMEs accumulated for the past 57 years, in addition to best credit analysis system and risk management system, all a great asset for the bank to boost its overseas operation.

In Cambodia, the bank already got a license to set up a branch in Phnom Penh in October, last year, and followed that by establishing a branch in December.

The bank got the license to set up a rep. office in Vladivostok, Russia, in September, last year and opened the office in the far-east port city in November. IBK finalized its takeover of two banks in Indonesia at the end of last year and will work on the merger of the Agris Bank and the Mitraniaga Bank to set up the IBK Indonesia Bank, which is the first takeover of foreign banks overseas by IBK.

IBK plans to turn its outlets in Ho Chi Minh City and Hanoi in Vietnam into local subsidiaries, with applications to the Vietnamese Central Bank already submitted in July 2017. The bank also plans to turn its rep. office in Myanmar into a bank when the country allows the foreign banks to operate in the country.

IBK’s widening overseas operation has to do with its support to SMEs expanded overseas moves to explore overseas market, the financial market in southeast Asia, as their financial and brand power are relatively limited still.

“Outside Asia, we are seeking to enter regions that are emerging as next strategic bases. We plan to open an office in Eastern Europe to prepare for increased presence of Korean companies and to secure an EU outpost after Brexit,” the bank has said.

“Anticipating increased trade between Korea and Russia in line with the government’s new Northern Policy, we will pursue plans to enter Russia’s Primorsky Krai (Vladivostok) region. Our mid- to long-term strategy will involve securing bases in Mexico and UAE.”

In countries where it already operates, the bank will push for different strategies in developed markets and emerging markets. In the global financial centers such as Hong Kong and London, we will beef up its future profit base by enhancing investment banking, syndicated credit and capital operations.

“In regions where global firms are actively seeking market entrance like New Delhi and Manila, we will focus our resources on local partners,” according to the bank. “Building a healthy and transparent organizational culture is also high on the agenda.”