Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
IBK head vows broader SME support to boost Kosdaq
Industrial Bank of Korea CEO Chang Min-young speaks during a press conference in Seoul, Tuesday. Yonhap
By Lee Hyo-jin
Industrial Bank of Korea (IBK) CEO Chang Min-young pledged broader support for small and venture firms, Tuesday, as part of the bank's efforts to revitalize the secondary bourse Kosdaq market.
"IBK will faithfully serve as a bridge so that companies with strong capabilities and growth potential can receive proper market valuations," Chang said during a press conference in Seoul marking his first 100 days in office.
"As the government moves to introduce measures such as a two-tier segment system in October to revitalize the Kosdaq market, IBK will also align with that policy direction by expanding support for small and medium-sized enterprises (SMEs) and productive financing,” he added.
IBK, a state-run lender focused on SMEs, plays a key role in implementing government-backed financing programs.
The press conference was held on the sidelines of the "IBK Kosdaq Boom-Up Day" event, aimed at connecting Kosdaq-listed companies with investors and raising market interest.
"Kosdaq is a key market for supporting the growth of small and venture firms and channeling funds to innovative companies," Chang told reporters. "We will help ensure that the market properly recognizes the value and growth potential of promising companies."
Earlier in March, IBK launched a task force aimed at revitalizing the secondary bourse.
The task force will focus on publishing research reports on Kosdaq-listed firms and related government policies, supporting investor relations activities and investor matchmaking for promising companies, and identifying firms with initial public offering (IPO) potential.
The state-run lender's push comes as the Kosdaq index continues to trade sideways around the 1,200 level, even as the benchmark KOSPI has been extending its rally toward the 8,000-point milestone. While the KOSPI has surged more than 80 percent so far this year, the secondary bourse index has risen around 20 percent.
Chang said smaller Kosdaq-listed firms often struggle to attract sufficient analyst coverage despite their growth potential, which leads to information gaps for investors.
"As such, IBK aims to help address the issue through initiatives such as the 'Kosdaq Boom-Up Day,' expanded research coverage and broader support for consulting, IPO listings and fundraising," he said.
Chang identified balanced regional development as a key policy priority, outlining plans to expand funding support for companies outside the Seoul metropolitan area.
He added that the lender would strengthen inclusive financing support for vulnerable groups and small business owners facing mounting borrowing costs amid inflation pressures.
"We will fulfill the public role of finance by providing responsible, inclusive financing for vulnerable groups and small business owners," the CEO said.