Funding
IBK pursues to expand financial support for SMEs through stable funding amidst global financial market volatility. IBK also promotes ESG finance and strengthens policy finance.
Supporting SMEs with Stable Funding
Amid the growing volatility in the global financial markets, IBK has implemented an aggressive funding strategy to strengthen financial support for SMEs. In March and October 2024, the bank issued hybrid securities and subordinated bonds on two occasions to improve its capital ratio and secure stable funding. In March, the bank issued hybrid securities worth KRW 400 billion at the lowest interest rate in the banking sector, reducing funding costs and improving the BIS Ratio by 0.17%p. In October, despite increased volatility in the financial market, the bank successfully issued subordinated bonds worth KRW 500 billion, further improving the BIS Ratio by 0.20%p.
IBK has supplied KRW 8.62 trillion in ESG bonds, accounting for 69.7% of the total ESG bond issuance in the domestic banking sector. This marks the fourth consecutive year that IBK has set the record for the largest ESG Bond issuance among Korean banks. IBK also expanded the supply of short-term SME bonds (less than one year) to stabilize the financial market, and was recognized for its international competitiveness by receiving the Global Finance Magazine’s Best Institution for Supplying Short-Term Investment Products Award.
Strengthening Competitiveness in the International Financial Market
IBK has pursued proactive strategies to expand its presence in the global financial market and secure stable foreign currency funding. In 2024, the bank issued a USD 800 million global ESG (Social) bond at the lowest spread ever, attracting high-quality investors. The bank also issued Asia's first D&I (Diversity & Inclusion) social bond to expand Inclusive Finance for supporting multicultural families, socially disadvantaged groups, and local communities.
In addition, the bank strengthened its collaboration with Mizuho Bank in Japan by newly establishing a JPY 30 billion Won-Yen Committed Line, securing an emergency source of foreign currency. Through these efforts, IBK has further enhanced its stability in the global financial market and strengthened its international financial network.
Expanding the Role of a Policy Bank
Expanding the Role of a Policy Bank IBK has actively participated in the government's major financial policies and public financial projects, fulfilling its role as a policy bank. In 2024, IBK issued KRW 200 billion of KOFR-FRN (KOFR-linked floating rate notes) for the first time in Korea, contributing to the activation of KOFR-based financial products led by financial authorities. Additionally, to strengthen financial support for key national industries, the bank purchased KRW 70 billion in supply chain stabilization fund bonds for industries such as semiconductors and secondary batteries, which accounted for 18% of the total issuance amount of KRW 400 billion. This purchase enabled the provision of stable industrial resources. Furthermore, as part of its microfinance support initiatives, IBK has purchased KRW 100 billion in Mortgage-Backed Securities (MBS) backed by Special Bogeumjari Loan as underlying assets, securing loan resources and continuing policy-driven support to alleviate interest burdens for low-income borrowers.
IBK signs a comprehensive Memorandum of Understanding (MOU) with Mizuho Bank (November 2024)
Trading
IBK has enhanced its competitiveness in the financial market through foreign exchange trading platform innovation and foreign exchange risk management support. By expanding non-face-to-face transaction environments, the bank helps SMEs manage exchange rate stability and respond effectively to market fluctuations.
Innovation in Foreign Exchange Trading Platform and Support for Non-Face-to-Face Transactions
IBK has launched a new foreign exchange trading platform, IBK FXON, to enhance customer convenience and maximize the efficiency of foreign exchange transactions. The platform forms a fast and efficient trading environment, where customers can conduct spot and forward transactions at market exchange rates directly.
As of December 2024, the proportion of non-face-to-face forward transactions through IBK FXON accounted for 75.1% by number of transactions and 58.2% by amount, achieving significant reductions in branch workload and improvements in operational efficiency.
Support for Foreign Exchange Risk Management for SMEs
Amidst increasing exchange rate volatility, IBK has conducted various seminars and briefings to support foreign exchange risk management for SME importers and exporters. The bank has conducted customized briefings for foreign exchange risk management and held seminars in collaboration with regional headquarters to provide information on exchange rate trends, foreign exchange risk management methods, and hedging products. Additionally, the bank has actively promoted online briefing sessions to expand practical financial support without the constraints of time and space, making it easier for companies located in regional areas to access.
Moreover, IBK operates the IBK Currency Market Conditions Service to provide SMEs with prompt and accurate financial market information. The bank provides updates on currency market trends and the latest financial market developments twice daily via text alerts and emails through the IBK Currency Market Conditions Service, helping customers understand real-time financial market changes and effectively manage exchange rate risks.
Launch of IBK FXON Foreign Exchange Trading Platform (June 2024)
Global Business
As a specialized bank for SMEs, IBK has fulfilled its policy role of alleviating financial difficulties and supporting the growth of SMEs even overseas. As of the end of December 2024, IBK operated a total of 60 overseas networks in 13 countries, and in regions where it had no direct network, it collaborated with 16 local financial institutions to provide financial and non-financial services necessary for the overseas business of SMEs.
Pursuing a Global Strategy to Support Enterprise Overseas Expansion
IBK has established a global business strategy in response to changes in the business environment, such as the reorganization of the global supply chain and the spread of digital finance. It has also pursued tailored strategies for developed countries and emerging countries separately based on the characteristics of each country. In emerging countries, IBK seeks to strengthen market competitiveness through full localization, while in developed countries, it strives to expand its business into high value-added sectors such as investment banking (IB) and fund brokerage. All these efforts demonstrate IBK’s strong commitment to providing optimized financial services for each country and supporting the global market entry of SMEs.
Expansion of Global Network
In response to changes in the global supply chain, IBK is establishing its subsidiaries in Poland and Vietnam to be new production hubs. The bank also plans to establish a second branch in the United States and India, and to enhance its network within the Southeast Asia region. In November 2024, the bank obtained approval to establish a subsidiary in Poland (IBK Bank Polska SA) for the first time as a Korean bank, achieving the result just eight months after applying for establishment in March. While it typically takes about 1.5 years to obtain approval for corporate establishment, but with the proactive efforts of IBK’s management and the Task Force Team (TFT), IBK successfully obtained approval in a short period.
Following the launch of the subsidiary in 2025, IBK will establish additional branches in major European manufacturing centers such as the Czech Republic and Hungary to serve as financial support hubs for SMEs that have entered Europe. As of 2024, IBK operated 60 overseas networks in 13 countries, with 16 subsidiaries in China, 32 in Indonesia, 1 in Myanmar, as well as 9 overseas branches and 2 offices.
Supporting SMEs in Overseas Expansion
IBK, through its 60 networks 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 broad 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 Promising New Growth Areas
In 2023, IBK resumed the dispatch of Global Regional Experts which had been suspended since 2016, to identify new markets with high growth potential and to train specialized personnel for regions planned for entry. Mongolia, Hungary, Australia, and Thailand were selected as priority dispatch regions, where market research and networking with relevant institutions were conducted. The data collected through these activities is being used to assess the feasibility of new market entries. Leveraging the data, IBK plans to expand support opportunities for SMEs in high-growth countries and further strengthen its global network.
Operation of the Knowledge Sharing Program for SME Finance
IBK has implemented the Knowledge Sharing Program (KSP) for SME Finance to promote the excellence of SME Finance overseas and share its know-how on SME Finance with government agencies in emerging countries. Additionally, in collaboration with the KDI School of Public Policy and Management, the bank has operated scholarship programs for local officials; since 2017, the bank has been continuously providing scholarships and conducting invitational training, fostering cooperation with overseas institutions. Furthermore, the bank participated in the Asia Mid-level Officials (July) and Senior Officials (November) Invitational Training Program organized by the Ministry of Economy and Finance.
Broadening Overseas Institutional Cooperation
IBK has served as a focal point for overseas cooperation projects and continuously expanded its collaboration with global banks, in addition to the 16 prominent foreign banks with which it has already signed MOUs.
In February 2024, IBK signed a comprehensive MOU with the Industrial and Commercial Bank of China (ICBC) to support the overseas expansion of companies from both countries and to strengthen cooperation in the global market. Additionally, IBK has expanded the scope of cooperation by sharing expertise in products, services, and policy finance for SMEs and by providing liquidity through the establishment of mutual committed lines. Both IBK and ICBC possess significant strengths as policy banks specialized in corporate finance. Therefore, the agreement between the two banks is expected to create synergies in the global market.
Strengthening Competitiveness in the Global Financial Market
IBK continues to expand its overseas business and strengthen its competitiveness despite the volatility of the global financial market and economic uncertainties. In 2024, through strategic asset management, the bank achieved a net increase of USD 600 million in overseas income-generating assets, and expanded securities trading in four countries to secure a diversified portfolio and establish a foundation for new revenue generation.
IBK’s performance of overseas branches was also remarkable; By expanding non-interest income and optimizing fund transactions between branches, IBK achieved a total operating profit of USD 137.1 million. Notably, IBK China Ltd. ranked first in net income among local Korean banks, and PT Bank IBK Indonesia Tbk achieved a record high net income of USD 13.2 million, marking the highest performance ever.
IBK China Ltd. and PT Bank IBK Indonesia Tbk are focused on enhancing digital finance services to expand the sales of non-face-to-face products and improve platform competitiveness. In China, IBK China Ltd. has collaborated with Xiaomi Technology Co. Ltd. to launch new financial products and create risk diversification, while in Indonesia, PT Bank IBK Indonesia Tbk has introduced QR-based easy payment and non-face-to-face account opening services to enhance customer accessibility. Additionally, in Vietnam and Cambodia, IBK has expanding digital finance services through QR payments, biometric authentication, and the activation of debit cards, maximizing customer convenience.
IBK has achieved results through tailored strategies for each region. In developed markets, the bank secured new IB loans amounting to USD 410 million through portfolio diversification and the discovery of high-quality large-scale loans. In emerging markets, it has recorded an increase of USD 86 million in loans by strengthening support for local SMEs.
Especially in Indonesia, PT Bank IBK Indonesia Tbk has enhanced its market competitiveness by operating locally tailored financial programs. For example, to enhance loan interest rate competitiveness, the bank has operated a loan fund amounting to IDR 700 billion and introduced a referral incentive system to stimulate the acquisition of new customers. Additionally, the bank has signed MOUs with industrial complexes with high growth potential and expanded local financial support by establishing a business model that provides loans to resident companies.
Going forward, IBK plans to continuously strengthen its global business with the aim of expanding overseas financial markets and diversifying revenue sources. Through digital finance innovation and regionally tailored growth strategies, IBK will actively support the overseas expansion of SMEs and further enhance global competitiveness.
