Creating Networks on Six Continents within the Year

In an attempt to establish financial networks in major Asian markets, the Industrial Bank of Korea (IBK) is accelerating its penetration into overseas markets by signing memorandums of understanding with major global banks so as to create global bases on six continents.

Its plan is to build financial support systems by the end of December in regions that IBK has difficult entering because only a few small and medium-sized Korean firms are there. It plans to do this through memorandums of understanding with local banks.

Chairman&CEO Cho Jun-hee of IBK stated, “We will create networks on six continents within the year. The Bank of China has agreed to sign a memorandum of understanding this year for comprehensive business cooperation.”

IBK’s intention is to establish robust networks in order to effectively support small and medium-sized Korean companies entering overseas markets. CEO Cho explained, “We cannot neglect small countries where only 10 small and medium-sized businesses have entered. Our goal is to create linked financial support systems through networks since we cannot enter everywhere.”

For this reason, IBK is building linked financial support systems through business cooperation with local banks in regions where it cannot directly enter due to entry regulations or an insufficient number of Korean companies being present in that region.

IBK concluded memorandums of understanding with Bank Rakyat Indonesia (May 1) and Emirates NBD Bank (May 21) in May of this year. It also signed a comprehensive memorandum of understanding with Germany’s largest bank Deutsche Bank in early September. In addition, IBK entered into memorandums of understanding with Australia’s biggest bank Australia And New Zealand Banking Group (ANZ) and influential Spanish bank Banco Santander in October. IBK will also sign a memorandum of understanding with The Bank of China next month. Furthermore, it is holding discussions with banks in South Africa, Turkey, and Myanmar regarding memorandums of understanding.

As a bank dedicated to supporting small and medium-sized Korean businesses, IBK is striving to build an Asian financial belt that focuses on major Asian markets where small and medium-sized Korean companies are actively entering. For this to happen, IBK is building belt-type business networks that are based in China and Vietnam and which will connect to promising neighboring countries.

According to its major country entrance plan, IBK will consistently expand its network in China to places such as Tianjin, Qingdao, Suzhou, Changjiang, Jhu Jiang, and Wǔhàn. It is preparing to open three branches in China, including one in Wǔhàn, this year.

In Vietnam, IBK opened a branch in Ho Chi Minh City in March 2008, as well as currently preparing to change its office in Hanoi to a branch in order to establish a local business network that covers critical economic locations in the Northern and Southern parts of the country.

In India, IBK will open an office in New Delhi in 2012 with plans to change this to a branch later.

With this, IBK’s 2012 plan to establish service bases on six continents seems to be strongly moving forward.

As of September 2012, IBK has 16 overseas bases, including four branches in the advanced financial markets (New York, Tokyo, Hong Kong, and London), one Chinese subsidiary equipped with 9 operating offices in China (including Tianjin, Qingdao, Shenyang, Yantai, Suzhou, Shenzhen, and Wǔhàn), and one branch (in Ho Chi Minh City) and two offices in major emerging countries (Hanoi and Moscow).

Meanwhile, IBK is also actively participating in social service activities around the globe such as extending the Hanoi Vocational Training Center in Vietnam, building a new school in Nepal, sponsoring the Peking University in China, and helping poor Chinese and Vietnamese families. On September 17, IBK held a launch ceremony for the 3rd global volunteers’ corps, announcing that it will participate in volunteer activities in Vietnam for four nights and six days, ending October 22.