IBK CEO vows to grant W100 tril. loans for startups

Industrial Bank of Korea CEO Kim Do-jin

By Jhoo Dong-chan

Industrial Bank of Korea (IBK) CEO Kim Do-jin has vowed to become a reliable “financing partner” for startups and smaller firms by making bold investments.

Last year, the lender announced its ambitious plan to grant 100 trillion won ($89 billion) worth of loans for the next five years exclusively for startups as part of the bank's future business plan to support startups and create more jobs.

The IBK said it aims to create 100,000 jobs through the five-year investment while actively engaging in M&A activities with small- and medium-size enterprises (SMEs) in a bid to strengthen competitiveness of the nation's economy.

“Commercial banks used to play an assistant role to financially support firms. The IBK aims to expand the role into a financial partner that engages more actively to promote their success in business,” Kim said in a statement.

In order to help strengthen competitiveness of the nation's SMEs, the IBK recently introduced three loan products _ the IBK Startup 3Plus, New Growth Vision Startup and Venture Startup Loan _ designed exclusively for these companies.

Along with its financial programs, the IBK has also invested in establishing incubators for them.

It opened its first startup support center in Mapo-gu, Seoul, December, and will open the second one in the capital soon. The bank selects promising startups to finance them while offering a business venue within the centers.

The IBK said it will build more centers outside the metropolitan area while aiming to attract more than 500 firms by 2022. Selected firms are expected to be granted up to 50 million won as an initial investment.

Kim also promised to fully engage in creating jobs.

“The IBK will closely work together with the government and private sector to create 100,000 jobs,” Kim said.

“We are committed to not only creating jobs but also establishing favorable environments for companies while financially supporting them for their sustainable growth.”

Kim also stressed the importance of seeking opportunities abroad in regions such as Southeast Asia, Europe and Northeast Asia.

This includes being at the forefront of backing companies that will do business in North Korea in the future.

"The bank should lead in supporting inter-Korean business relations as the two Koreas work toward reconciliation," Kim said.