Corporate Banking

SME Loans

  • Since the establishment on August 1, 1961, we have constantly expanded our corporate client base. Although it took us 44 years to secure more than 500,000 corporate clients— a monumental threshold in our own right—it only took eight more years to cross the historic one million mark on December 19, 2013. As of December 14, 2015, the number of our corporate clients reached 1.2 million thanks in no small part to the Bank’s consistent efforts at core competencybuilding and platform-building. Going forward, we will continue to expand our corporate client base as a new growth engine to consolidate our predominant position in the corporate banking business.
2015 Performance
  • IBK retained IBK retained the leadership role in financing competitive SMEs in financial distress over the past year.
    In 2015 alone, we extended new loans worth KRW 10.3 trillion, claiming 20 percent of the annual KRW 52.8 trillion net increase in SME loans extended by all Korean banks. (Source: Bank of Korea, won-denominated loans, including trust loans)
  • IBK’s SME loan balance stood at KRW 126.1 trillion in 2015 and accounted for 77.3 percent of the Bank’s KRW 163.2 trillion total loan balance by the end of the year. Claiming 22.34 percent of the SME loan balance market share, this makes IBK the sole Korean financial institution with a market share of 20 percent or greater.
  • New Products
  • As a policy bank that specializes in SME lending, we contributed to upholding the government’s finance policy to help lift the nation’s economy out of its current quagmire and to stimulate Korea’s creative economy by rolling out various new products aimed specifically for financing SMEs, especially start-ups and SOHOs, in 2015.
  • In 2015, the IBK Successful Startup Loan financed startups that had been in business for seven years or less in securing new growth engines and commercializing their advanced technologies so as to enhance their competitiveness. In order to support SOHO borrowers, the IBK SOHO Loan for Hope helps SOHO borrowers facing financial distress, while the i-ONE SOHO Loan provides working capital financing and is in fact the Bank’s first corporate loan product directed exclusively to non-face-to-face channels.
  • IBK also places significant importance on product development and the timely funding of competitive corporate clients with advanced technologies so that they can successfully market these technologies.
  • Significant Growth in SME loans (KRW billion)
  • The Intellectual Property 1+1 Contract- Guaranteed Loan is today the only product of its kind available on the market. Under exclusive agreement with the Korea Technology Finance Corporation (KIBO), this loan is offered as a package (an intellectual property- guaranteed loan plus a guaranteed loan) solely by IBK to promote technology financing businesses. The Guaranteed Loan for Technology-Escrowed Companies is a guaranteed loan product that funds companies which agree to technology escrow in the form of special benefits, such as additional exemptions under a business alliance with Korea’s Win-Win Partnership Foundation. The IBK FinTech Dream Corporate Loan is earmarked for borrowers with FinTech know-how and those in related businesses, funding their technology R&D and working capital. In addition, IBK offers additional financial assistance to those companies with advanced technologies to maximize the effects of the investment and financing.
  • SME Support:
  • IBK’s Hidden Champion Exporters/ Technologies Program provides comprehensive business consulting services as well as preferential loans after fair evaluations regarding competitiveness and the technological and business operations prospects of SME applicants.
  • In 2015 alone, we selected 141 new beneficiaries. In 2016, we will add 150 new hidden champion technologies to be supported in each company’s journey to become worldclass business entities.
  • As a proponent of the government-led creative economy initiative, we operate special loan products and support services to technology-driven SMEs with high growth potential through the IBK Creative Company Program. The program added 32 new SMEs as beneficiaries in 2015 and will select 40 more recipients in 2016 for the Bank’s continued support of SMEs with outstanding R&D achievements and growth potential.
  • Well aware of the difficulties that SMEs often face when it comes to their advertisement and sales network, we extend a helping hand in our own way. For example, we play promotional video clips of SME client products on TV monitors at IBK branch offices nationwide. We also operate a sales network dedicated to SME products in support of the sales growth of SME clients. In addition, we have a special website dedicated to corporate clients in which we provide SME CEOs and employees with useful information on business administration, leadership, and market trends. We do this at no cost to clients and is simply meant to support their knowledge-building in the fields of economics and business administration, as well as in making the most informed decisions possible.
  • The IBK Corporate Real Estate Consulting Service effectively responds to the special needs of SME clients for consulting service on their real estate transactions. It is also effective in attracting and retaining high net worth clients.
  • No. of Technology Financial Products
  • Town meeting with corporate clients in Southern Gyeonggi region
(FINETEK, a display manufacturer,www.ifinetek.com)
  • Marketing MEs and Large Corporations
  • The 2015 amendment to the Framework Act on Small and Medium Enterprises caused many Medium-sized Enterprises (MEs) to be downgraded to SMEs. Consequently, the number of corporate clients with deposit transactions declined by 88 from 2014, while the balance of lending to ME borrowers fell by KRW 0.2 trillion, to KRW 4.4 trillion, in 2015.
  • In compliance with the revised guidelines under the new act, we established a comprehensive management system that specializes in MEs to discriminate between MEs and SMEs. The new system helped make the client classification process more convenient at our branch offices, while enhancing the efficiency of our ME support programs. In particular, MEs that have a large number of subcontractors, or a solid record of paying back ME loans, are now classified as Core ME clients and qualify for premium interest rates.
  • In addition to the existing signatories— large corporations, public corporations, MEs, and local governments, we had creative economy & innovation centers nationwide sign up to our mutual growth initiatives, which contribute to revitalizing regional economies through SME support. In line with this, the IBK Co-prosperity Loan has successfully set a new model for large corp.-SME win-win partnerships. Of the 149 corporate signatories (96 being large corporations) to the loan program as of 2015, Samsung Group, LG Group, Lotte Group, Korea Power Corporation and KT&G are just a few of the big business names people will recognize. A total of KRW 6.9 trillion in lowrate loans were extended to 9,243 SME suppliers as of 2015. Through a partnership with creative economy & innovation centers and their counterpart large corporation signatories, a total of KRW 121 billion was extended in loans to 340 SME mentees of the centers.
  • Co-prosperity Deposits/No. of Co-prosperity Agreement Signatories
2016 Plans
  • In consideration of the number of SMEs that should be promoted to MEs in 2016, we set our sales target in 2015 at a net increase of KRW 100 billion in ME loan balance for the coming year. This change to the ME Total Management System will facilitate the more fine-tuned handling of old clients and allow for a more aggressive marketing approach with ME clients in good credit standing. This year, we will continue expanding the scope of our partnerships with public organizations and large corporations, while strengthening our new alliance with creative economy & innovation centers, all the while playing a leading role in the development of regional economies.
  • In a bid to preemptively respond to the rapid changes occurring in financial markets, IBK will adopt the most advanced technologies, such as big data and P2P, as we reinforce our non-face-to-face channels, including our Internet-based and mobile banking services.
  • New products will also be introduced to finance more SMEs in step with the everevolving market paradigm. The Big Data Plus Loan will finance up to KRW 100 million in credit loans to start-ups that have been in operation more than one year based on analysis and evaluation of their financial data. The IBK Funding for Hope is a special product in that it offers guaranteed loans to any SME that has secured a preset amount of investment through crowd funding.
  • In an effort to assist with the sustainable growth of our loyal corporate clients that have been IBK clients for a significant length of time, the Corporate Loans for Trusted Corporate Clients provides financing for working capital and facility investments. The Franchise Mobile Purchase Loan is a loan product specialized for franchisees that can secure low-interest loans for their working capital on collateral made in the form of guarantees by a guarantor(s). These new products will allow us to maintain market dominance, while fulfilling our role as a reliable financial partner to small- and medium- sized enterprises.
  • Co-prosperity Deposits/No. of Co-prosperity Agreement Signatories

Services for SMEs

IBK Consulting Services
  • The IBK Consulting Center boasts the largest financial consulting body in the industry. Its 70 dedicated professionals make full use of their profound expertise and working experience with global consulting firms, large accounting firms, and/or law firms to provide practical, individual-oriented consulting services. This includes business strategy-building and administration, human resources management, production management, business succession consulting, taxation/ accounting, legal and environmental issues, and patent consulting.
  • 2015 Performance
  • On the heels of the successful IBK Consulting Service Project that provided free consulting services to 2,000 SMEs from August 2011 to December 2014, IBK launched the SME Consulting for Hope Project in 2015.
  • With the goal of setting up a business platform for the sustainable growth of SMEs, IBK now offers business consulting services to 1,000 SME clients per year, supporting them as they establish advanced business management systems. The number of recipients will total at least 3,000 SMEs in the three-year period ending in 2017.
  • 2016 Plans
  • In 2016, the IBK Consulting Center will provide consulting services to 1,000 new SMEs through the SME Consulting for Hope Project.
  • With its World-Class Business Project, the center will also provide a range of different comprehensive services to prospective companies. This encompasses business administration, taxation, accounting assistance, and legal consulting services. At the same time, it will serve as a stepping stone in the early growth of these SMEs on their way to becoming leading global companies. IBK also has plans to introduce themebased approaches in tackling social issues through four specific programs: a Change- Up Business Consulting service for marginal companies to help them get back on track immediately; a Consulting Service for Enterprises with Excess Credit Exposure to ensure preemptive responses to credit risks involving corporate borrowers; a Consulting for Global Expansion service; and a Consulting for the Emissions Trading Scheme service. In particular, more programs will be in place in 2016 to support the stable growth of startups. The Phase-By-Phase Support Program and Startup Support Dream Team will assist startups with timely consulting services from the very start through to their development at each stage of growth. Special consulting services, such as the Consulting for Commercialization of Technology, will also be in operation for technology-driven startups and small businesses in the FinTech field.
  • IBK’s consulting services are directed at supporting SMEs achieve sustainable growth and to establishing long-term partnerships with clients, while also serving as a key means in solidifying IBK’s growth platform.
  • Cumulative Performance Results/Cumulative Number of Job
Job Creation
  • IBK has been running an online recruitment portal called IBK Job World (www.ibkjob. co.kr) for SMEs since February 2009 to proactively address the supply and demand disparity in the SME job market.
  • 2015 Performance
  • In an effort to affect positive change with the supply and demand imbalance in the SME job market, IBK enhanced the quality of our content and services available through the Job World portal in 2015. That same year, the Bank held three offline job fairs, bringing the total number of these events it had held by the end of 2015 up to 45. In all, approximately 180,000 job seekers and recruiters have attended these fairs, with 3,000 people having secured employment on the spot.
  • As part of our commitment to supporting SME recruitment, IBK launched a special preferable fund for corporations that create new jobs, offering a deduction in loan interest payments and operating fess worth KRW 500,000 per job created. As of the end of 2015, KRW 31.6 billion of the funds had been extended through this loan to 2,930 corporate borrowers. The portal also promoted financially secure SME workplaces that offer competitive working conditions and show growth potential so as to raise public recognition of SMEs as great workplaces.
  • As a result, the aggregate number of jobseekers who found employment through IBK Job World reached 80,802 by the end of 2015, a 7,566-person net increase in employment in 2015 over the previous year.
  • 2016 Plans
  • Inspired by the goal of having 100,000 people find employment through IBK Job World by 2017, the Bank plans on hosting job fairs in partnership with the Ministry of Science, ICT and Future Planning, and the Presidential Committee on Young Generation. We also aim to establish a oneon- one headhunting system through the portal. This will give us the chance to create a job placement system for people of all ages and backgrounds who are seeking employment, while catering to individual needs according to their experience and education.
  • To that end, IBK will help secure more quality jobs at SMEs that can ensure stability and growth potential for talented jobseekers. Additionally, service convenience and content quality will be further upgraded on the portal as the Bank mounts more aggressive marketing initiatives through the portal to increase the corporate and individual subscription rate. By accomplishing all of this, we will be able to effectively address the disparity in jobseekers and recruiters in the SME job market.
  • With an eye on the future, we will continue identifying and promoting competitive new SMEs to further enhance their public image as great workplaces, while bringing together quality jobs and highly qualified jobseekers.
  • IBK Job World Road Show at Hanyang University/IBK Job Fair for Samsung partner companies