IBK Annual Report 2024

ROLE AS A POLICY BANK

Key Articles of the IBK Act

IBK is a government-owned bank specialized in SME Financing in accordance with the IBK ACT

• Purpose

  Promotion of the independent economic activities of SMEs and their
  economic position in the national economy

  Article 1

• Appointment of CEO

  Appointment of a Chair & CEO of IBK by the President of the Republic Korea

  Article 26

• Business Plans

  Government approval of IBK’s annual business plan

  Article 35

• Issuance of SMIF Bonds

  IBK may issue SMIF Bonds (Small and Medium Industry Finance Bonds) up to
  20 times of the paid-in-capital

  Article 36-2

• Government’s
  Guarantee on Bonds

  Government’s guarantee on the payment of interest & principal of IBK’s SMIF bonds, subject to approval from the National Assembly

  Article 36-5

• SME Research

  Research and business consulting for SMEs

  Article 33-3

• Solvency Protection

  Government’s obligation to provide funds to cover in case of IBK losses

  Article 43

• SME Lending

  Mandate to allocate at least 70% of total funding for SMEs

  Enforcement Decree 31

• Why SMEs?

  SMEs are the Pillar of the National Economy

  

  * Source: K-Biz (Korea Federation of Small and Medium Business),
  edited from KOSTAT as of 2022

• IBK’s Role

  Financial Safety Net of SMEs during Crisis Periods
  IBK acts as an execution vehicle, the direct SME financing channel

  

History: IBK since 1961