Getting Ready for Another Century

IBK celebrates half century of founding this year and is determined to prepare for next 100 years financing SMEs

President Cho Joon-hee of the Industrial Bank of Korea

President Cho Joon-hee of the Industrial Bank of Korea said this year is a very significant year for IBK as it celebrates its half century since its launch in 1961 with a mandate to help SMEs financially.
The new CEO of the bank, who took over from retired president Yun Yong-ro in December last year, said "let's make the bankOs next century of operation as great a success as the past half century, with its achievement as a foundation."
Cho said he believes in the bankOs successful record as a huge contributor to get the country out of the economic slump caused by the global financial crisis by providing loans to over 60 percent of SMEs around the country as a partner to those companies.
The new president thinks that the financial environment will see great change due to intense competition among banks, especially in the area of M&As and normalization of the global economy. IBK will focus on tightening its internal operations and searching for new growth engines to expand its assets.
In order to go about achieving the targets, IBK will develop financial products and services different from rival banks under segregated strategies, he said, adding that the bank needs to boost its ties with corporate customers by providing loans to companies in the process of growth as a platform bank. IBK will try to maximize its customer value by segregating its customers based on their potential and utilizing its customer management system, which is being used to tailor customer management for each client's needs.
With the domestic financial market reaching a saturation point and the home loan market in particular, IBK will strengthen its overseas operations to find new growth engines overseas where it can take advantage of its expertise in lending to SMEs and it can build its banking network and expand its business areas, Cho said. The untapped overseas markets include such countries as Vietnam and Indonesia.
IBK will focus on such strategies as "best management" of its customers, solidifying its hold on SME customers in particular; broadening its funding sources; creating higher synergy among its affiliates; finding new growth engines; and expanding its social contributions, making up six major activities to be pursued by IBK this year, the CEO said.
This year, too, IBK will lend its financial support to SMEs with great potential in their future growth areas by allocating 28 trillion won to them in loans: 7.5 trillion won for facilities; 2.2 trillion won for parts and raw materials development; 3.8 trillion won to support their futuristic business development; 15 trillion won to support service firms that have great potentials for success; and 3 trillion won to search for SMEs with great potentials.
To secure the position as the leading bank in the business of financing SMEs by expanding its market share in the business finance sector and strengthening the capacity for comprehensive financial services, including IB and management consultancy services.
To secure the foundation for continuous growth by greatly strengthening procurement capacity in the teller's window.
To strengthen global business capacity for overcoming the limitation of the domestic market and entering new overseas markets.
To secure the foundation for obtaining stable non-interest profits by strengthening the capacity of each sector and identifying new drivers for growth.
To be the leading bank in terms of customer satisfaction by developing innovative products that fully meet various financial needs of customers and securing pricing capacity, including reasonable interests and fees.
To prepare for the implementation of Basel II by developing the system for evaluating customers' credit, raising the ability to manage risks, and securing equity capital.
To strengthen sales capacity by nurturing professionals for new business sectors that are critical for the achievement of the company's vision and re-implementing all business processes of personnel, and to create a new business model by strengthening the e-biz capacity.
To nurture professionals for new business sectors that are critical for the achievement of the company's vision and strengthen the capacity of all personnel.nw