In 2024, heightened geopolitical risks and increased financial market uncertainties—triggered by shifts in the monetary policies of major economies—persisted across the globe. Yet, even in the face of these unrelenting challenges, IBK achieved exceptional growth by duly fulfilling our fundamental mission as a policy bank.
For instance, IBK provided a record high of KRW 74 trillion in SME loans last year, achieving the largest-ever market share. The Bank also actively responded to digital transformation of the financial industry in both quantitative and qualitative aspects as a undisputed leader of the SME market. In addition, IBK laid the groundwork for future growth: we secured an approval to establish a subsidiary in Poland, the first for a Korean bank, and completed construction of the new Hanam Data Center. Last but not least, IBK posted a net income of KRW 2,428 billion on a separate financial statement basis and KRW 2,654 billion on a consolidated basis.
In 2025, the Korean economy is again faced with unprecedented internal and external uncertainties. The Trump administration of the U.S. has signaled significant shifts in its economic policies, exacerbating global uncertainties and exchange rate fluctuations. Meanwhile, a slowdown in domestic demand continues to put a growing pressure on SMEs and microbusinesses. In response, IBK is resolved to strengthen our commitment to our customers, helping them address their financial needs and delivering them with new value, so that we, together with the customers, can overcome the challenges and take a bold step forward for a sustained, robust growth. To this end, IBK will focus our efforts on the following four areas.
First, IBK will take the lead in providing financial support for SMEs and strengthen our dominance in the SME market.
We will continue to extend SME loan supply for those under liquidity crunch and strengthen not just financial, but also non-financial support for the vulnerable companies and microbusinesses to help them overcome diverse business obstacles. Also, IBK will ensure that high-potential SMEs with advanced technological capabilities get practical, customized support throughout their corporate life cycle, so that they can grow into global companies. Through these initiatives, we aim to serve as a growth ladder for SMEs, while solidifyying our leadership in the SME market and contributing to the national economic growth.
Second, IBK will work to enhance the future value of our customers and the entire community.
We will always place customer value at the center of all operations. We will ensure that our products and services are aligned with the best interest of the customers and are always innovative to meet their changing needs.. . Furthermore, we will remain committed to fulfilling our social responsibility as a policy bank: we will strengthen our inclusive finance programs for the vulnerable and assist SME employees with diverse welfare programs and wealth management solutions.
Third, IBK will pursue sound and balanced growth.
To ensure sustainable growth of the Bank, we will focus on revenue source diversification, particularly by strengthening competitiveness of the non-interest income businesses. For subsidiaries, more initiatives will be launched to create synergy within the IBK financial group. In addition, we will double up asset quality control efforts to reduce cost factors and enhance productivity. On the global front, we will expand IBK Financial Belt by soon-to-be-launched subsidiaries in Poland and Vietnam. In the process, we will pursue two-tracked approach to produce material results: investment banking and financial intermediation functions will be strengthened in developed economies, while localization will be the focus in emerging markets.
Last, IBK will ensure principled finance takes root to cement customer trust.
Should any unfair practices arise, corrective actions will be taken immediately. Also, on-going monitoring will take place to eliminate any chances of mis-selling. Customers will be protected from financial frauds and internal control will be reinforced to make IBK free of any financial incidents. All in all, IBK will spare no efforts to bolster customer trust.
Respected Shareholders and Customers,
While many challenges are expected in 2025, each and every member of IBK will uphold our commitment to customer-centric values. Armed with the lessons learned from overcoming numerous crises, we will make 2025 a year of shared growth—where our customers, community and IBK rise together.
We sincerely ask for your continued interest in and support for IBK along the way. May the year ahead bring good health, prosperity, and happiness to you and your families.
- Kim Sung-tae,
- Chairman & CEO
Industrial Bank of Korea
