Industrial Bank

The Industrial Bank of Korea (IBK) is a pioneer in Korea's financial market, with a philosophy of "Supporting Businesses for a Better Future" in the fields of SME finance, retail banking, and cross-border finance. Founded on August 1, 1961, the headquarters is located at 79 Euljiro, Jung-gu, Seoul, South Korea. As a state-owned bank with about 76% of the shares held by the Korean government, IBK is listed on the Korea Stock Exchange (stock code: 024110) and serves more than 5 million customers, making it a leader in SME finance in Korea with its solid financial performance and innovation capabilities.

Basic Information

Korea Development Bank is a state-owned commercial bank established on August 1, 1961 and headquartered at 79 Euljiro, Jung-gu, Seoul, South Korea. The bank was established under the Korea Development Bank Act to promote the development of small and medium-sized enterprises through an efficient credit system, and was established in 1961 on the basis of the urban branch of the Agricultural Bank of China, and in 1982 it began to issue financial bonds for small and medium-sized enterprises, and in 2007 it strengthened its market positioning with the launch of the "IBK" brand. The South Korean government, through the Ministry of Finance, holds about 76% of the shares, with the remainder held by institutional investors and public shareholders. IBK is strictly regulated by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) of Korea, and is required to comply with the Banking Act and international financial standards to ensure operational transparency and the safety of customer funds. Its deposits are protected by the Korea Deposit Insurance Corporation (KDIC), with a maximum coverage of 50 million won (about 37,000 U.S. dollars) per depositor. The bank's SWIFT code is IBKOKRSE and the Legal Entity Identifier (LEI) is 5493003NOCSC6LUWUF03. IBK has 612 branches and more than 1,000 ATMs in South Korea, and 20 overseas branches in Asia (China, India, Japan, etc.), North America (the United States), and Europe (the United Kingdom), with a total of about 10,000 employees in 2024.

Deposit & Loan Products

depositsKorea

Development Bank offers a wide range of deposit products to meet the savings needs of individual and corporate customers:

• Current Deposits: Including checking accounts and savings accounts, such as "IBK Savings Account", the minimum amount to open an account is 1,000 won, and the base annualized rate of return (APY) is about 0.1%-0.5%, and the latest interest rate needs to be confirmed through branch or online banking. The current deposit account supports flexible deposits and withdrawals, which is suitable for daily fund management (deposit services).

• Fixed deposits: Support multiple currencies such as Korean won, US dollar, Japanese yen, etc., with deposit terms ranging from 1 month to 5 years, and the minimum deposit amount is 1 million won. In 2025, the fixed deposit interest rate will change depending on the maturity, such as about 2.0% for 1 month, 2.5% for 3 months, 2.8% for 6 months, 3.0% for 1 year, and 3.5% for 2-5 years (deposit rate).

• Featured products:

  • high-yield savings account: such as "i-ONE account", which offers an annualized interest rate of up to 2.0%, requires maintaining a balance of more than 1 million won, and has no monthly fee, which is suitable for customers who are looking for high returns.

  • Large Certificates of Deposit (CD): Support flexible tenors, suitable for large amount of money customers, the interest rate needs to be queried through the branch or app, and the early withdrawal penalty is 90 to 180 days of interest.
    Customers can check the "Cloud Interest Rate" offer through the "i-ONE Bank" app or online banking, and the deposit products support instant opening and interest rate calculation, and some accounts provide free transaction fee offer.

loansKorea

Development Bank offers a comprehensive range of loan products with a focus on SME and individual financing:

• Mortgages: Fixed-rate and variable-rate mortgages with up to 70% of the value of the property and up to 30 years to pay. In 2025, the floating interest rate will be as low as 3.5% (based on the benchmark interest rate of the Bank of Korea, about 3.0%), with a fixed interest rate of about 4%-5%, and cash rebates will be provided, and the application will require a credit score of 700 or more and an annual income of more than 30 million won.

• Car loans: New and used car financing is supported, with a loan amount of up to 100 million won, a term of up to 7 years, an annualized interest rate (APR) of about 4%-6%, and a credit score of 660 or more.

• Personal Line of Credit: The loan amount ranges from 10 million won to 200 million won, the term is 1 to 5 years, the annualized interest rate (APR) is about 5.99%-10%, and the application threshold is an annual income of more than 20 million won and a good credit history.

• Flexible repayment options: Mortgages and personal loans offer no penalty for prepayment, monthly or bi-weekly payment plans, and a revolving line of credit for flexible debt management.
  All loans are subject to bank approval, and customers are required to provide credit history, proof of income and asset information, subject to the terms of the loan agreement. The bank's SME loan services (e.g., equipment loans, trade finance) account for 70% of its loan portfolio, providing SMEs with fast approval and preferential interest rates.

Digital Service ExperienceKorea

Development Bank's mobile banking app "i-ONE Bank" is the core of its digital services, which can be downloaded on iOS 14.0 and above and Android 9.0 and above devices, with an App Store rating of about 4.6 and a Google Play rating of about 4.4, and users praise its quick launch (in less than 2 seconds), intuitive interface, and multi-language support (Korean, English, Chinese) (i-ONE Bank). Core features include:

• Face recognition: support for biometric authentication (such as Face ID and Touch ID), combined with 256-bit end-to-end encryption to ensure transaction security.

• Real-time transfer: Supports real-time transfer of won through the real-time transfer system of the Federation of Korean Banks, with a daily limit of up to 100 million won, and international remittance covers more than 100 countries, and cooperates with Western Union to provide low-rate transfer (overseas remittance service).

• Bill management: Support online bill payment, automatic debit, and e-statement, allow up to five bills to be paid at a time, and sort transactions in real time.

• Investment Tool Integration: Support stocks, funds, bonds, and ETFs through the IBK investment platform, providing real-time market data and investment advisory services.
  IBK Internet Banking, an online banking platform, supports multiple browsers and provides similar functions, allowing customers to open an account in less than 5 minutes through the app or website. The app supports accessibility features such as dynamic font adjustment and VoiceOver compatibility for visually impaired and hearing-impaired customers. In 2023, about 60% of customers completed transactions through digital platforms, significantly improving the user experience.

Technological InnovationKorea

Development Bank excels in the fintech sector, driving technological advancements through its Digital Innovation Center:

AI customer service: Introduce an AI-driven customer service system to analyze transaction behavior, detect fraud risks in real time, automate 80% of customer inquiries by 2023, and plan to launch a virtual assistant in 2025 to support 24/7 inquiries and personalized financial advice.

• Open Banking API Support: Follows the Open Banking Framework of the Financial Services Commission of Korea and integrates with third-party service providers to provide account management and financial services interoperability, with support for 35 deposit, credit card, and loan service APIs by 2024.

• Mobile payment platform: support QR code payment, mobile check deposit, and cooperate with Samsung Pay and KakaoPay to improve the payment experience; Launch of a blockchain-based trade finance platform in 2023 to streamline the letter of credit process.

• Other innovations: Partnering with AWS to optimize the trading system in the cloud; Launched e-financial fraud prevention services, such as overseas IP interception and delayed transfers; In 2024, we will invest KRW 50 billion to upgrade our cloud technology and data analysis platform to improve operational efficiency.

Featured Services & DifferentiationKorea

Development Bank is known for its SME financial support and internationalization services:

SME support: Customized loans and cash management services through IBK SME Services, participation in the government's SME Financing Guarantee Program, loan approval in as fast as 10 seconds, up to KRW 5 billion, and 70% of the loan portfolio in 2023 (SME Services).

• Cross-border finance: With 20 branches in Asia (China, India, Japan, etc.), North America (the United States) and Europe (the United Kingdom), it supports cross-border trade and investment of Korean companies, and the cross-border transaction volume will increase by 15% in 2023 (international business).

• Green Finance: Launched green bonds and loans at preferential rates to support renewable energy projects, and won the 'Korea Green Finance Pioneer Award' in 2023 in response to the United Nations Principles for Responsible Banking.

• Community Contribution: Supporting education and charity projects through the IBK Foundation, donating 10 billion won for community development in 2023, holding financial literacy lectures, and improving the financial management ability of small and medium-sized business owners.

• i-ONE brand: Launched in 2020, the i-ONE brand integrates payment, savings and investment functions to significantly improve customer stickiness for young customers and small and medium-sized enterprises.

Market Position & Accolades

Korea Development Bank is a leader in SME finance in South Korea, with total assets of about 400 trillion won (about 300 billion U.S. dollars) in 2024, ranking high among 38 banks in South Korea. With 612 branches and more than 1,000 ATMs, the bank serves more than 5 million customers, and has a strong position in SME finance, retail banking and cross-border finance. In 2023, banks reported an 8% increase in deposit balances, a 6% increase in loan balances, and a non-performing loan ratio remaining below 0.3%, indicating that they are operating soundly. IBK's innovations in digital services and green finance have enabled it to remain competitive in regional markets. Its international business accounts for 10% of total revenue, with a particularly strong presence in China and Southeast Asia. Major accolades include:

• the 2023 "Best SME Bank in Korea" award.

• 2022 Korea Green Finance Pioneer Award

• 2021 'Best Digital Bank in Korea'
  Korea Development Bank's SME focus and innovation capabilities make it the backbone of Korea's financial market.

SummaryKorea

Development Bank has become a pioneer in Korea's financial market with its more than 60-year heritage, specialized services and innovative financial products for small and medium-sized enterprises. It offers a wide range of deposit and loan products to meet customer needs through local branches and digital platforms. The digital service is centered on the "i-ONE Bank" application, which provides efficient real-time transfer and investment management functions. Technological innovations include AI customer service, open banking APIs, blockchain technology, and mobile payment platforms, demonstrating its forward-looking digital transformation. With its SME support, cross-border financial services, green finance, and multiple industry accolades, Korea Development Bank continues to demonstrate strong competitiveness and influence in the Korean and regional financial markets.

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