KDB's Diversified Role
State bank makes huge contribution to make Korea a financial hub

Korea Development Bank has decided to make this year the initial year for pursuing the process to be a leading bank in Northeast Asia.
The largest development bank in Korea will employ its record performance results in 2005 as the backbone of its strategic push to become a great bank in the region following the Vision 2011 plan.
The bank drew up the Seven Major management targets or goals this year. First, it decided to release 24.5 trillion won in facility funds to spur facility investments across the country, as a growth engine for the economy this year; It will also provide support to SMEs in a bid to close the gap between large conglomerates and SMEs; The bank will also set up a special support plan to SMEs and start-ups, especially foster the development of start-up firms in the high-tech and information technology areas.
The bank will also strengthen its role to be a leading bank by expanding its loans based on credit, without collateral, through a precise credit analysis of technologies. The bank will develop special financial packages to meet specific needs of borrowers in some areas and establish markets for those financial products.
The bank will try its best to find new financial products this year, including asset funds in the SOC sector, PEF, and those in the blue ocean areas and the development of business in the areas.
The KDB will try to search for joint development projects through the Northeast Asia Development Fund Council and advance to overseas project financing markets to play its part in making Korea a regional financial center in Northeast Asia.
The bank also plans to contribute to the early normalization of companies undergoing restructuring and find ownership firms normalized.
The bank will also push its plan to increase its assets to amount to 100 trillion won by expanding the number of sound firms by providing industrial funds at the right time this year. The bank will also strive to achieve 1 trillion won in net profit by finding proper profit sources and establishing a smooth circulation of its profits. The bank will keep its non-performing asset ratio below 1 percent through the early recall of loans provided to bankrupt firms and strengthening its watch on companies that have completed restructuring. The bank will turn its risk management system into an advanced one to cope with the new Bank for International Settlement (BIS) system.
The bank will double its financial service capacity by advancing its corporate financing, investment financing, international financing and restructuring consulting in order to make its competitiveness strong by having synergistic effects with related financial institutions. KDB will try to tailor its financial services for the life cycle of a corporation and supplement its needed service areas. The bank will expand its network in the newly-developing countries such as BRICs and support Korean companies entering those countries for businesses.
The bank will also try to provide stable industrial funds to its customers at the right time and at lower costs to cut their financial expenses. KDB will always be ready to cope with abrupt changes in the banking environment through reformative capacity and raise its organizational culture to spur the cooperation among its units. It will also upgrade its readiness to provide services satisfactory to its customers through a sensitive marketing. The bank will expand the training of its talented employees and outsourcing of qualified personnel.
The bank, in doing its traditional role in making contributions to the industrial development and national economy as a state bank, has done its share of the given responsibility, and accomplished an outstanding performance achievement last year. Its net profit totaled more than 2 trillion won last year and provided 21.15 trillion won in industrial funds, up 21.3 percent from the preceding year and 7.8 trillion won to SMEs including deferred repayment of outstanding loans.
The bank has established the No.1 KDB Value Private Equity Fund with 300 billion won in fund to create the market for private equity funds and invested 128.1 billion won in the Hite consortium. nw

Gov. of Korea Development Bank Kim Chang-rok