Sales network to expand from Hanoi, Ho Chi Minh City bases

New entity to support Korean firms, local SMEs in Vietnam

Attendees pose for a photo at the launch ceremony for IBK Vietnam Bank held in Hanoi, Vietnam, on Tuesday. From sixth from left: Lee Mi-yeon, South Korea's ambassador to Vietnam; Pham Quang Trung, deputy governor of the State Bank of Vietnam; Jang Min-young, president of Industrial Bank of Korea; Kim Ki-moon, chairman of the Korea Federation of SMEs; Ko Tae-yeon, chairman of the Korean Business Association in Vietnam; and Park Kyung-il (far right), inaugural head of IBK Vietnam Bank. [Industrial Bank of Korea]
Attendees pose for a photo at the launch ceremony for IBK Vietnam Bank held in Hanoi, Vietnam, on Tuesday. From sixth from left: Lee Mi-yeon, South Korea's ambassador to Vietnam; Pham Quang Trung, deputy governor of the State Bank of Vietnam; Jang Min-young, president of Industrial Bank of Korea; Kim Ki-moon, chairman of the Korea Federation of SMEs; Ko Tae-yeon, chairman of the Korean Business Association in Vietnam; and Park Kyung-il (far right), inaugural head of IBK Vietnam Bank. [Industrial Bank of Korea]

Industrial Bank of Korea has officially launched its Vietnam subsidiary after completing a licensing process that took nearly nine years. The bank plans to expand its local operations — building on its existing branches in Hanoi and Ho Chi Minh City — to broaden financial support for Korean companies operating in Vietnam and for local small and medium-sized enterprises.

IBK held a launch ceremony for IBK Vietnam Bank in Hanoi on Tuesday.

The bank received final approval from the State Bank of Vietnam in April to establish the local subsidiary. It completed the incorporation process and began full operations on Sept. 25.

The Vietnamese government has maintained strict licensing standards for foreign banks as part of its domestic banking restructuring. IBK spent nearly nine years navigating the approval process before completing the conversion to a local subsidiary. IBK Vietnam Bank is the 10th foreign bank subsidiary in Vietnam.

IBK said it will leverage the operational experience and SME financing expertise accumulated at its Hanoi and Ho Chi Minh City branches to grow its local business. The bank intends to expand its network around major industrial complexes, supplying funds not only to Korean companies in Vietnam but also to local SMEs. It also plans to support economic cooperation between Korean and Vietnamese businesses through productive finance.

Park Kyung-il, inaugural head of IBK Vietnam Bank, said the subsidiary's launch marks "a new starting point for the Vietnam localization strategy we have pursued since opening the Ho Chi Minh City branch in 2008." He added that the bank would "practice responsible finance — putting customers first and serving as an umbrella in difficult times — and grow into a reliable local bank that develops alongside the Vietnamese economy."

Meanwhile, IBK operates overseas subsidiaries in China, Indonesia and Poland in addition to Vietnam. The bank has recently been restructuring its global operations, focusing on the early stabilization of its Poland and Vietnam subsidiaries while working to improve profitability at its existing units in China and Indonesia.


rim@heraldcorp.com