Corporate Banking

SME Loans

  • Since our establishment in August 1961, we have steadily built up our capacity and constantly expanded our corporate client base. The number of our SME customers passed the one million mark in December 2013 and reached 1.3 million in December 2016. IBK, as the leader in SME financing, plans to not only maintain, but strengthen our leadership in the segment.
Activities in 2016
  • IBK continued to play a leading role in supporting the SMEs experiencing a shortage of funds. This included new loans worth KRW 8.4 trillion, or about 27% of the total KRW 30.5 trillion net increase in SME loans extended by all of Korea’s financial institutions in 2016.
  • Our grand total of outstanding SME loans amounted to KRW 173.2 trillion in 2016. SME loans made up KRW 134.4 trillion, or 77.6% of the total. Our market share of SME loans stood at 22.6%, allowing us to retain our number one position in the industry.
  • New product development
  • We developed a number of quick and convenient products that customers can access on our mobile and Internetbased banking channels. These included a product called “i-ONE Small Business Loan,” an innovative secured loan product that allows self-employed businesspeople to apply for extra working capital without having to visit a bricks-and-mortar bank branch. Our Franchise Mobile Loan can be applied for by franchised shop owners the same way.
  • We developed a variety of specialized products to promote the growth of high-technology Fintech firms. We also help facilitate transactions in commodities that form the foundation of industrial activities.
  • We launched the IBK Funding for Hope program to encourage the use of crowdfunding as a means of helping companies pursue additional investments in their businesses. Loans from the program are disbursed after a company has proven that it has already secured a predetermined amount of financial backing through crowdfunding. These enterprises work in tandem with the Corporation Investment Information Plaza (CIIP), which formulates its loan conditions through agreements with a variety of credit guarantee institutions.
  • We also offer a Big Data Plus Loan Program. Developed to ensure the most efficient use of big data, the program offers customers preferential loans and attractive interest rates.
  • Supports for SMEs
  • The IBK Hidden Champion Exporters and Technologies Program targets SMEs with global technological competitiveness, providing them with a wide range of services such as exclusive loans and non-financial services. We supported 109 of these relatively small but highly successful companies in 2016.
  • We also operate the IBK Creative Enterprise Program. It supports the operations of technology-driven SMEs that have exhibited a high potential for growth, offering them a variety of special loan products and other supports. The program selected forty new companies in 2016, and has provided assistance to a total of 160 as of the end of 2016.
  • The SME Myeongpum Maru, a showroom dedicated to SME products, collaborates with KORAIL to offer a wide variety of high-quality products produced by SMEs. Located inside Seoul, Daejeon, East Daegu, and Gwangju Stations, its stores helped a total of 284 tenant companies to expand their market range and increase the sales in 2016.
  • We also provide SMEs with a wide range of advisory services in such areas as real estate transactions, investment analyses, and real estate management. They are provided by means of an MOU arranged with a professional consulting firm. 183 SMEs took advantage of this program in 2016.
  • SME Loans (In trillions of KRW)
  • ME and large corporation marketing activities
  • Another way that IBK helped to support the activities of SMEs in 2016 was by expanding our co-prosperity program to include not only large corporations but also medium-sized enterprises (MEs), local governments and public institutions. We signed mutually beneficial agreements with 161 partner companies and institutions including Samsung Group, LG Group, Korea Electric Power Corporation, and the city of Daegu through the IBK Co-prosperity Loan Program, and offered KRW 8.4 trillion in low-rate loans to 11,795 SMEs as of the end of 2016.
Plans for 2017
  • IBK sees SMEs as important future growth engines that will seize the initiative in the Fourth Industrial Revolution. As part of this strategy, we are planning to develop loan products that will support the establishment of smart factories and forward-looking industrial and business sectors that will play a leading role in this economic transformation.
  • This will include adding to our leadership in the SME financing sector by offering loan products that provide preferential funds for the sustainable growth of our long-term client companies, as well as specialized, Internet and mobile-based products that can inform our clients about their loan limits in advance.
  • Another plan for 2017 is to support one hundred additional “hidden champion” export companies with quality technologies, so that they can evolve into global players. We will also assist forty or so promising R&D companies through our IBK Creative Enterprise Program.
  • Going forward, we will promote co-prosperity with SMEs and large corporations. We also intend to continue playing a leading role in the area of regional economic development by increasing our agreements with public institutions and large corporations.
  • 55th SME Dream Forum, February 16, 2017
  • Total Support for Selected “Hidden Champion” Exporters and Tech Companies / Number of Co-Prosperity Agreement Signatories (Companies/Entities)
  • CEO Kim Do-jin visiting Jeongdo Machinery in Gimpo, January 2, 2017

Services for SMEs

Advisory Services
  • IBK’s Consultation Center is the largest financial advisement organization in Korea, employing more than seventy dedicated professionals such as management consultants, licensed tax accountants, certified public accountants, lawyers, and patent attorneys. Their expertise and experience working with global consulting firms, large accounting firms, and law firms are put to good use providing SMEs with tailor-made management advisory services. These include establishing business operating strategies; management, personnel, and labor-related issues; production management; family business succession; taxation, accounting, legal, and environmental issues; and patents.
  • Activities in 2016
  • IBK’s SME Consulting for Hope Project was launched in 2015. Its goal is to strengthen the healthy growth of corporate partnerships and support SMEs wishing to build state-of-the-art management systems. We are planning to offer free advisory services to a total of 3,000 SMEs in the threeyear period ending in 2017.
  • The IBK Consulting Center has already offered its advisory services to 2,077 SMEs that had been experiencing difficulties accessing high-quality management assistance during the past two years due to budgetary constraints. A total of 4,240 SMEs have benefited from this no-cost assistance since 2011.
  • Plans for 2017
  • In 2017, IBK’s Consultation Center intends to provide its no-cost advisory services to 1,000 new SME clients to reach its target of 3,000 over three years. In addition, the Center will extend the services of its World-Class Business Project to offer companies with a promising potential for growth a wide range of services in such areas as business administration, taxation, accounting, and legal advice. These programs will enable IBK to serve as a vital stepping-stone helping earlygrowth- stage SMEs to evolve into leading global enterprises.
  • IBK will also continue offering a wide range of business-related advisory services. They include a Change-Up Business Advisory service for companies that are not performing up to expectations; an Advisory Service for Enterprises with Excessive Credit Exposures; Advice for Global Expansion; Advice for Emissions Trading; and Advice for Smart Factories.
  • We will also offer programs to assist the steady growth of startups, including a Phase-By-Phase Support Program and our One-Stop Total Advisory Service.
  • Number of Free Advisory Services
Provided to SMEs/Number of Workers Hired
through IBK Job World
Job Creation
  • IBK opened an online recruitment portal for SMEs in February 2009. Called IBK Job World for SMEs, it can be accessed at www.ibkjob.co.kr. Our goal is to create jobs to help resolve unemployment issues involving young people, and to address manpower problems facing SMEs.
  • Activities in 2016
  • IBK held forty-eight job fairs across the country in 2016. 200,000 job seekers attended them, with approximately 3,000 being hired on the spot. We also launched a Preferential Interest Rate Fund for companies that are interested in job creation. It features cuts in lending rates and fees worth KRW 500,000 every job created, to lift the burden of financial costs on SMEs. As of the end of 2016, KRW 33.1 billion worth of funding had been extended to 3,048 borrowers taking advantage of the program. We also helped to advertise SME workplaces that offer betterthan- average working conditions to dispel the public’s negative image associated with SMEs.
  • IBK also offered employers a tailormade recruitment service that matches potential employees with SMEs needing extra human resources through a program called the IBK Scouting Service. It had assisted seventy-four SMEs to make 247 hiring decisions as of the end of 2016. We also signed 521 industrial-academic cooperation MOUs with specialized vocational high schools, helping 3,488 students to find employment through IBK Job World. As a result of these efforts, the aggregate number of jobseekers who found employment through IBK Job World reached 87,594 by the end of 2016, up 6,792 from the previous year’s total.
  • Plans for 2017
  • In 2017, IBK will continue with our many programs to support employment, assist start-up businesses, and promote new job creation projects. We will also lead the way in identifying and publicizing high-quality SMEs, and fulfill our social responsibilities as a solid stepping stone linking SMEs with hard-working and highly-talented human resources.
  • Awards Ceremony for Social Venture Growth Support Project, September 29, 2016/IBK Job Fair for SMEs, September 21, 2016

Retirement Pensions

  • Retirement pensions were first introduced to Korea in December 2005. Since then, the pension market has accumulated KRW 147 trillion in reserves and gained 340,000 corporate subscribers. As of the end of 2016, 88,696 of these corporations had subscribed to IBK’s corporate pension schemes—the largest number in the country.
  • Activities in 2016
  • The Bank added KRW 1,692.6 billion worth of pension reserves in 2016, giving us a total of KRW 10,414.2 billion and a market share of 7.14%. This made us the fifth of forty-five financial institutions in Korea to surpass KRW 10 trillion in the total size of reserves. Our total number of corporate subscribers increased by 7,807 over the year to 88,696, giving us an overall market share of 29.31%, the largest in the industry.
  • Plans for 2017
  • In 2017, IBK will continue growing our retirement pension operations by responding to market changes and intensifying competition in a preemptive and proactive manner. This will include strengthening our foundations for stable sales operations by attracting high-quality new customers, developing future markets, and strengthening our supports for our salespeople. We will also increase the weighting of retirement pension funds as a proportion of our operations, and improve our ability to create new revenues through such cost savings as the establishment of Internet and mobile sales channels.
  • No. of Technology Financial Products
  • No. of Technology Financial Products