Retail Banking

Retail Banking

  • Having served SMEs over the past five decades, IBK is evolving into the nation’s leading bank that serves all Korean. We are laying the roots for sturdy growth by turning our 15 million retail customer base into life-long clients.
  • Retail Banking Customers(million)
Performance in 2017
  • As of the end of 2017, total deposits stood at KRW 149.2 trillion, representing a net increase of KRW 11.7 trillion from a year earlier. This translates to a market share of 12.6% based on the figures for the six commercial banks. Retail deposits showed a net increase of KRW 2.5 trillion to KRW 58.3 trillion, translating into market share of 11.5%.
  • 1. Growing the retail client base and attracting core retail deposits: Over the past year, IBK actively engaged in marketing and promotional events based on a strong understanding of target client segments. This led to a net increase of core retail deposits by KRW 1.8 trillion to KRW 20.6 trillion as of the end of 2017. Retail customers numbered 14.956 million, up by 389,000 over the previous year. Thanks to diverse marketing efforts to expand the retail client base, the number of core clients increased by 410,000 to 6.52 million. IBK will continue with efforts to attract new clients and expand our core customer base to sustain growth.
  • 2. Main products of 2017 and sales performance: IBK successfully launched innovative products that cater to the needs of different age brackets such as accounts for minors, people in their 20s~40s, and persons aged 50 years and older. We also introduced a deposit product for the non-face-to-face channel (7-in-1 Account), which attracted KRW 1.3 trillion to become the year’s best-selling product. The IBK W Account for salaried workers, launched last September, has already seen the number of account openings reach 74,974.
Plans for 2018
  • We will carry out marketing to boost core deposits to secure a low-cost funding structure and strengthen profit generation from retail loans ahead of an interest rate up-cycle. Various activities will be pursued to expand the retail client base for continued growth of IBK.
  • 1. Marketing to boost core deposits: The objective of core deposit marketing is to attract clients that use automatic transfer services. To that end, we will adopt indicators of client segments that are likely to remain active customers and carry out onsite training and provide potential client profiles to branches. We will also conduct marketing targeting army bases to capitalize on pay hikes for soldiers in 2018. To boost market share, we will carry out viral marketing before physicals by the Military Manpower Administration and take advantage of expanded accident insurance. We will concentrate marketing on soldiers right before and after their discharge to promote automatic salary transfer accounts.
  • 2. Attracting new customers and expanding retail client base: Wide-ranging steps will be taken to win new clients and broaden the retail customer base. In the non-face-to-face channel, we will explore opportunities to attract new customers through strategic alliance with social commerce firms. We will also explore the O2O (online to offline) market for potential new clients. Moreover, we will focus on the 20-something age group by pursuing marketing targeting children and students based on big data. IBK will contribute to job creation with an initiative under which a modest sum is paid out to successful job searchers. We will pursue marketing toward clients who find a job with a business partner of IBK and meet salary transfer/credit card requirements.
  • With the goal of reinforcing customer management to drive profit-oriented growth, IBK will devise a new preferential client scheme. We plan to overhaul the existing VIP scheme and introduce an integrated reward system. We will lock in existing clients by allowing customers to check their VIP status and benefits via mobile banking and recommending products that can upgrade their VIP status.
  • National meeting of branch managers, February 10, 2017
  • Release of ‘i-ONE 1,000’ savings product for non-face-to-face transactions, February 1, 2017
  • Banking Department at IBK Headquarters


  • Retail Loans

    • As of the end of 2017, the household loan balance amounted to KRW 31.61 trillion, rising by KRW 829.7 billion from a year ago.
    • Household Loans(in billions of KRW)
    Performance in 2017
    • Mortgage loans stood at KRW 18.13 trillion, accounting for 57.3% of total household lending, and the average LTV (Loan to Value) ratio was 52.4%. Growth of mortgage loans has slowed since LTV and DTI (Debt to Income) regulations have been tightened as part of household debt control measures, whereas demand for home lease loans have steadily increased. Unsecured loans, mainly targeting licensed professionals and quality customers increased by KRW 328.6 billion to KRW 5,974.3 billion.
    • IBK is also extending support to the low-income brackets and people with low access to financial services with products such as the IBK New Hope Seed Loan, Workers’ Livelihood Stabilization Loan, Switch Dream Loan and Saittol Loan.
    Plans for 2018
    • The banking sector as a whole is likely to see a slowdown in household loan growth given potential risk factors such as the introduction of tougher DTI requirements and DSR (Debt Service Ratio), higher capital gains tax on owners of multiple homes, and upward pressure on market interest rates.
    • IBK will diligently implement tighter loan screening standards to promote lending practices that emphasize a borrower’s repayment ability. We plan to increase policy mortgage loans to end-users and improve the structure of mortgage loans. Additionally, we will strengthen non-face-to-face lending operations to address the competition posed by internet-based banks
    • To fulfill its role as a policy bank, IBK is reaching out to people with low access to financial services as part of efforts to support the government’s microfinance policy. Such measures include granting a grace period on principal repayment to borrowers with low credit ratings and low income levels who have difficulty repaying loans due to job loss or business closures. We will also promote the IBK New Hope Seed Loan and raise loan ceilings for mid-interest rate loan products. Moreover, we will make additional contributions to the IBK Smile Microcredit Bank to support small business owners operating outside the metropolitan areas.