IBK launches Vietnamese subsidiary to expand support for SMEs
Summary
IBK officially launched its Vietnam subsidiary in Hanoi on Tuesday to expand financial support for Korean companies and strengthen Korea-Vietnam financial cooperation. The subsidiary began operations on Sept. 25 after receiving final approval from the State Bank of Vietnam in April. IBK Vietnam Bank will expand around major industrial complexes and draw on IBK’s SME financing expertise. The launch followed a nine-year licensing process that began in 2017.
Key Facts
- IBK Vietnam Bank is Vietnam’s 10th foreign-owned bank and gives IBK five overseas subsidiaries.
- The subsidiary will build on IBK branches in Hanoi and Ho Chi Minh City and provide financing for productive investment and economic cooperation.
- IBK said Vietnam had not issued a new banking license to a domestic or foreign bank since 2017.
- The launch ceremony followed the completion of the subsidiary’s establishment process after final approval from the State Bank of Vietnam in April.
Industrial Bank of Korea (IBK) CEO Chang Min-young, eighth from left, poses with the bank's executives and Vietnamese officials during the launch ceremony for IBK Vietnam Bank in Hanoi, Tuesday. Courtesy of IBK
Industrial Bank of Korea (IBK) officially launched its Vietnam subsidiary in Hanoi, aiming to expand financial support for Korean companies operating in the country and serve as a bridge for financial cooperation between the two countries, the state-run lender said Wednesday.
The launch ceremony, held in Hanoi on Tuesday, came after the lender completed the establishment process following final approval from the State Bank of Vietnam in April. The subsidiary began operations on Sept. 25.
The subsidiary is Vietnam's 10th foreign-owned bank, according to IBK.
IBK Vietnam Bank plans to build on the operating experience of IBK's branches in Hanoi and Ho Chi Minh City, as well as the state-run lender's more than six decades of expertise in policy financing for small and medium-sized enterprises (SMEs).
The bank will expand its network around major industrial complexes to better serve Korean businesses operating in Vietnam and provide financing to support productive investment and economic cooperation between the two countries.
"IBK Vietnam Bank's official launch marks a new chapter in our localization strategy, which began with the establishment of our Ho Chi Minh City branch in 2008," said Park Kyung-il, general director of the subsidiary.
"We will put customers first and provide responsible financing, serving as a reliable local bank that grows alongside Vietnam's economy," he added.
The launch follows a nine-year licensing process that began in 2017, when IBK submitted its application to the Vietnamese central bank.
At the time, Vietnamese authorities were tightening oversight of the banking sector as they pursued restructuring of domestic lenders. Vietnam had not issued a new banking license to either domestic or foreign banks since 2017, according to IBK.
With the launch, IBK now has five overseas subsidiaries, the lender said.
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