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- Korea Development Bank allocates 20 tln won for loans this year

The Korea Development Bank will celebrate its 51st founding anniversary this year as a pioneer bank instrumental in providing funds to such key sectors as heavy and chemical industries, automobile and semiconductor in line with the ideals for its founding in 1954. As a state-run bank, it did a lot in the reconstruction of the country ravaged by the Korean War (1950-1953) and the development of the national economy.
The bank now has established itself as the country's representative bank in corporate banking with a capital increase to 10 trillion won, the largest among banks, and 80th in the world and its assets totaling 92 trillion won.
KDB's loans for corporate facility investment amounted to 20 trillion won, about 30 percent of all loans for facility investment and there are plans to funnel 20 trillion won in various loans this year.
The bank has been a leading bank in the investment financing area, taking the lead in such areas as project financing, start-up investment loan, and bond underwriting services.
KDB provided some 15 trillion won in project financing for social overhead capital projects since 1995, 600 billion won since 1998 to finance investment in start-up companies and 10 trillion won in bond underwriting.
KDB plans to funnel 20 trillion won in various loans to corporate customers this year, the largest in its history, double the amount provided in 1997 at 10 trillion won. The bank has allocated such a large amount for loans to help perk up the economy, which has been showing signs of recovery and to lead the role of beefing up the economy's growth potential.
To look at the details of disbursement plan of the fund, some 7.5 trillion won has been allocated to facility investment and SOC projects, up 23 percent from last year, around 3.5 trillion won will be provided to such key areas as the development of new technology, growth of knowledge-base industry, and strengthening corporate competitiveness and restructuring.
In addition, the bank plans to provide 4.5 trillion won for stable operation of SMEs including operation funds to tide over temporary liquidity problems, up 200 billion won from last year.
In line with the growing importance of the stock market as a funding source, the bank has allocated 7.5 trillion won to invest in stocks and private equity funds (PEF), up 25 percent from last year. KDB will launch PEF to provide loans to such areas as corporate restructuring, growth engine industries, parts industries to broaden the banks function as a development bank and make PEF another funding source.
KDB sees banks that have locked up a crucial battle among themselves and foreign banks such as Citi and Standard Chartered Banks. The bank has designated this year as a year for its jump to become one of the world's best banks in terms of profit, soundness and other management indicators to the level of the world's top banks. The bank also has a plan to train its staff as a means to strengthen its competitive base to be a global bank.
KDB as a corporate financing bank, has an excellent customer base and corporate financing know-how in such sectors as project finance, bond underwriting and corporate restructuring.
The bank is held in high regard in the international financial community and its research capability provided by its research units including the KDB Research Institute is one of the strong points for the bank.
The bank has been providing an integrated corporate financing service based on its core business areas including corporate financing, investment financing, international financing, corporate restructuring and consulting. The bank will also try to come up with various means to provide facility investment funds in linkage with investment and international financing and find out new financial needs in connection with social and regional development. KDB has also been dispensing much of its time to provide right type of financial services for customers in cooperation with finance companies including Daewoo Securities and KDB Capital. nw