IBK Aims to Grow into ‘Mega Bank’ with 500 Trillion Won in Assets by 2025

President Kim Seong-tae of the Industrial Bank of Korea (IBK) speaks at a meeting with reporters, marking his 100 days in office on April 11. (Photo: IBK)

The Industrial Bank of Korea (IBK) is accelerating efforts to grow into a mega bank with more than 500 trillion won in total assets.

Celebrating his 100 days in office on April 11, IBK President Kim Seong-tae disclosed his ambition to make IBK a mega bank with more than 500 trillion won in assets by 2025.

Upon his inauguration, President Kim had come up with a plan to make IBK a “strong bank sticking to the basics to realize worthwhile financing and a decent bank designed to raise the values of customers and society.”

First of all, Kim said, his task is to balance the growth of IBK and its subsidiaries. President Kim said IBK plans to develop data-based new business models by introducing “IBK Customer My Data Service” and building “IBK SME Data Bank Platform.”

Kim said, “IBK will support SMEs’ overseas market entry with the goal of doubling the portion of the global revenues by 2025.”

IBK will create groupwide in-house communication and collaboration programs and introduce a digital-based synergy management regime with the goal of raising the portion of the subsidiaries’ revenues to 15 percent by 2025, he said.

IBK, KODIT Inaugurate Consultative Body to Boost Policy Loan Support for SMEs

The Industrial Bank of Korea (IBK) and Korea Credit Guarantee Fund (KODIT) struck an MOU on the operation of a consultative body to boost policy financing support to SMEs at IBK headquarters in Eulji-ro, Seoul, on March 30.

Under the deal, both sides agreed to discuss the grievances SMEs experience on top of developing policy financing systems, an MOU on financing support, offering management support to SMEs, and responses to inside and outside changes, and cooperation in taking preemptive steps to explore matters for mid-term support.

The consultative body consists of a policy council, manned by vice presidents and directors, and a working consultative committee, led by department heads. The body will regularize meetings twice or more annually, IBK said.

The consultative body will take up topics, such as guaranteeing long-term, low-interest loans, guaranteeing funds to companies seeking to normalize management, spurring facility investments, and guaranteeing joint projects being implemented by large-sized companies.

Details of each proposal will be finalized and implemented after discussions through the working-level consultative committee meetings.

IBK President Kim Seong-tae said, “The deal is expected to ramp up timely and highly effective support through close cooperation between the policy financing institutions targeting SMEs.”

IBK President Kim Lends Ear to Voices of SME Representatives

The Industrial Bank of Korea (IBK) had a meeting with SME representatives in the Ansan area in Gyeonggi-do on March 28 and exchanged views on ways of easing grievances and complaints SMEs experience and offering support as part of efforts to facilitate communication with the field.

Speaking at the meeting at the Ansan Chamber of Commerce and Industry, IBK President Kim said, “IBK will aggressively expand financial and non-financial support by designating support to help SMEs and small business owners overcome a crisis as top priority tasks while sparing no effort to provide support to SMEs necessary for preparing for the future in keeping with the rapidly changing management environment.”

Prior to the meeting, IBK President Kim toured Korea AMF’s worksite. Korea AMF President Jang Jung-hoon said, “I expect IBK to give an aggressive leg-up to overcome a crisis as the whole of the manufacturing sector experience hardships, caused by the sagging economy.”

Following the meeting with SME representatives, IBK President Kim visited IBK’s outlets in the Ansan and Siheung area to give words of encouragement to staff there.

He also visited Haesung AIDA, a leather producer, and listened to the developments of the industry segment.

Meanwhile, IBK plans to offer 18.6 trillion won in financial support as part of efforts to help SMEs cope with a multiple of crises.

The policy financing institution provide interest reduction worth about 850 billion won over three years to help SME ease their financial cost burden.