Funding
IBK pursues stable funding aligned with its medium- to long-term funding plan, responding to shifts in domestic and international financial markets while expanding its capacity to finance SMEs. Even amid heightened market volatility, the bank maintains a balance between capital adequacy and liquidity management, fulfilling its mandate as a policy financial institution.
Stable Funding
IBK strengthened its capital adequacy through three issuances of securities during the year—hybrid capital securities on two occasions and subordinated bonds once. In March and November, the bank issued hybrid capital securities worth KRW 590 billion and KRW 400 billion, improving its BIS ratio by 0.23 percentage points and 0.16 percentage points, respectively. In August, a KRW 300 billion subordinated bond issuance further increased the BIS ratio by an additional 0.11 percentage points.
Additionally, IBK issued KRW 7.25 trillion in KRW-denominated ESG bonds, accounting for 61.3% of total ESG bond issuance in the banking sector. This marked the fifth consecutive year in which IBK ranked as the largest ESG bond issuer among Korean banks. These issuances aligned SME support and social value creation with the bank's broader funding strategy, while reinforcing its leadership in the ESG bond market.
Despite heightened uncertainty in financial markets, IBK implemented a diversified funding strategy to address varied retail and wholesale funding demand. The flexible supply of short-term SMIF bonds (with maturities of less than one year) contributed to market stability. In recognition of this performance, IBK received the "Best Institution for Supplying Short-Term Investment Products" award for the second consecutive year from Global Finance.
Diversifying the Funding Structure
In the international capital markets, IBK issued a USD 1 billion global ESG bond (Social) under the theme "SME Empowerment and Relief Bond," marking the largest single overseas bond issuance in the bank's history. The issuance further solidified IBK's standing as a policy financial institution leading SME finance on the global stage.
At the beginning of the year, IBK became the first Korean institution to publicly issue a Kangaroo bond (AUD 700 million) in the cross-currency market, diversifying its funding currency base. Proactive global investor relations activities resulted in the largest order book in Kangaroo bond issuance history, strengthening investor confidence in bonds issued by Korean institutions. IBK also established a new USD 100 million committed credit line with Standard Chartered Bank, extending its contingency foreign-currency funding channels and reinforcing its foreign-currency liquidity management framework.
Expanding Policy-Linked Funding
IBK actively supported the expansion of financial products linked to the Korea Overnight Financing Repo Rate (KOFR), in line with policy directions set by financial authorities. Of the total KRW 8.7 trillion in floating rate note (FRN) issuance in 2025, the bank issued KRW 1.46 trillion in KOFR-linked FRNs, accounting for 16.8% of the market and contributing to the activation of the KOFR market.
The bank also participated in the issuance of Supply Chain Stabilization Fund bonds to support key government-designated industries, including semiconductors and secondary batteries. The bank purchased KRW 520 billion out of a total issuance of KRW 5.79 trillion. IBK plans to continue its active participation in such initiatives, further reinforcing its policy finance role.
Trading
IBK is upgrading the sophistication of its foreign exchange (FX) trading platform and strengthening FX risk management support to help SMEs maintain stable operations amid heightened volatility in FX and financial markets. Leveraging its market expertise, the bank continues to enhance SMEs' capacity to manage currency risk effectively.
Supporting Exporting and Importing SMEs' FX Risk Management
IBK conducted regular briefings and seminars hosted by regional headquarters for individual corporate clients, providing practical guidance to exporting and importing SMEs navigating increasingly volatile currency markets. These sessions covered FX market trends and outlooks, hedging strategies, and FX hedging products, enabling SMEs to build practical capabilities to respond proactively to exchange rate fluctuations.
To improve accessibility, the bank actively expanded non-face-to-face FX risk management briefings, allowing companies in remote locations to participate regardless of time or place. As a result, the total number of FX risk management briefings reached 347 as of the end of December 2025, marking a significant year-on-year increase. The proportion of non-face-to-face sessions also rose steadily, reflecting continued improvements in customer accessibility and engagement.
Operating "IBK FXON," a Non-Face-to-Face FX Trading Platform
IBK operates "IBK FXON," a non-face-to-face FX trading platform that enables customers to execute spot and forward transactions in real time via PC.
As of the end of December 2025, IBK FXON accounted for 79.2% of the bank's total forward transactions by volume and 59.7% by profit, firmly establishing itself as a core non-face-to-face FX trading channel. The platform reduces the operational burden on offline branches while enhancing transaction transparency and helping prevent incomplete sales.
Providing Financial Market Information
IBK provides the "IBK Currency Market Conditions Service" to help SMEs respond swiftly to changes in financial markets. Delivered twice daily via KakaoTalk notifications and email, the service offers updates on currency market conditions and key financial market trends, supporting informed corporate decision-making on currency-related matters.
"IBK FXON" Trading Screen
Global Business
As Korea's leading SME-focused bank, IBK operates a global network comprising 56 establishments across 13 countries, providing both financial and nonfinancial services to Korean companies expanding overseas. In response to changes in the business environment—including global supply chain restructuring and the acceleration of digitalization—we are building a robust global network while expanding our overseas earnings base.
Expanding Global Networks
In November 2025, IBK became the first Asian bank to obtain business license for its subsidiary in Poland, securing a strategic foothold in the Eastern European market. The Poland subsidiary will expand financial support for Korean companies operating in Poland as well as local businesses, while serving as an EU regional headquarters supporting SMEs entering Eastern European countries such as the Czech Republic, Hungary, and Slovakia.
In May 2025, IBK received a confirmation letter (C/L) from the State Bank of Vietnam (SBV) to commence procedures for establishing a subsidiary. This new entity will expand its network around industrial complexes and provide comprehensive financial services to Korean SMEs operating in Vietnam as well as local companies.
In Singapore, IBK is pursuing the establishment of an International Innovative Finance Center to centrally manage global funding and investment banking (IB) functions. In India, IBK is also reviewing the establishment of a branch in the southern region to strengthen its SME support base. Through these initiatives, IBK aims to enhance its global funding and IB capabilities while strengthening new sources of revenue.
Supporting SMEs' Overseas Expansion
IBK, through its network of 56 establishments in 13 countries, provides not only financial support for overseas business operations but also local insights on regulatory requirements, property acquisition, administrative procedures, and other critical information that may be difficult for companies expanding abroad to access.
Additionally, the bank operates the Global Biz BOX platform, a non-face-to-face comprehensive financial consultation system, through which the bank provides information on country-specific expansion, global business support programs, and overseas investment reporting procedures, as well as offer local financial consultation services in connection with overseas branches. These efforts underline IBK's extensive support for SMEs preparing for global markets.
Identifying New Promising Growth Areas and Strengthening Global Cooperation
To identify promising growth areas and assess market entry feasibility, IBK operates a Global Regional Expert Program. Following the dispatch of experts to Mongolia and Australia in 2024, the Bank sent regional experts to Hungary, Thailand, Taiwan, and Laos in 2025, with plans to expand the program to Singapore and other locations in 2026.
IBK also shares its expertise in SME finance with government institutions in emerging economies through the Knowledge Sharing Program (KSP). In 2025, it participated in training programs for the central banks of the Philippines and Laos, as well as Vietnam's Credit Information Center (CIC), and two Asia Mid-level Officials Invitational Training Programs organized by the Ministry of Economy and Finance.
In addition, scholarship programs at the KDI School of Public Policy and Management and invitation-based training programs for officials from partner countries have been continuously operated since 2017, further expanding global policy cooperation.
Global Business Performance
Despite heightened global economic uncertainty in 2025, IBK achieved a net increase of USD 1.3 billion in total through the selective acquisition of high-quality assets. The bank continues to diversify its portfolio and secure new sources of revenue, supported by the expansion of its securities holdings and IB assets.
IBK's overseas branches and subsidiaries recorded USD 174 million in operating profit, driven by continued efforts to expand non-interest income and reduce costs through inter-branch funding transactions. Meanwhile, IBK China and PT Bank IBK Indonesia each received the highest credit rating of AAA from local external credit rating agencies.
* For PT Bank IBK Indonesia, an impairment loss of USD 46 million on intangible assets, including goodwill and core deposits, was excluded.
Achievements in Digital Services
IBK China and PT Bank IBK Indonesia are strengthening non-face-to-face product sales by expanding their platform lineups and launching new services. In addition, IBK is generating tangible results in Vietnam and Cambodia through the development of the "Dynamic QR" and "Bakong system."
Regional Business and Growth Strategies
IBK's overseas branches are implementing new growth strategies tailored to the characteristics of each region. Branches in advanced economies expanded IB lending to identify high-quality large-scale corporate loans and diversify their portfolios, resulting in USD 458 million in newly acquired earning assets. Meanwhile, branches in emerging markets increased their earning assets by USD 106 million through strategies focused on supporting locally operating SMEs.
