IBK plays a vital role in supporting SMEs that struggle from lack of capital. In 2017, they granted KRW 8.2 trillion in loans to SMEs, representing about 20% of the KRW 41.6 trillion net total SME loans extended by the overall banking industry.
IBK’s total loans outstanding stood at KRW 182.1 trillion, of which KRW 142.4 trillion (78.2%) were SME loans. IBK is the only bank with a SME market share exceeding 20%; as of end of 2017, its share was 22.4% to give IBK a commanding lead over the competition.
The number of corporate clients passed 1.4 million on the strength of efforts to improve core capabilities and expand the client base. They will continue efforts to attract corporate clients to secure future growth engines and solidify IBK’s standing as a powerhouse in corporate financing.
Product Development
As a state-invested financial institution specializing in SMEs, IBK developed a wide variety of products catering to the needs of startup companies, small business owners, and others in the SME sector to invigorate the economy, create jobs, and encourage entrepreneurship.
Special Small Business Owners Loan expands support for small business owners experiencing difficulties during a recession by offering preferential loan terms such as advantageous interest rates.
IBK Start-up 3 Plus Program helps start-ups resolve their initial financing difficulties by offering credit loans, low interest rates, or deferred interest to SMEs that have been in operation for less than seven years. Job Creation Plus Loan is a low interest rate loan that enhances SMEs’ ability to drive job creation. The IBK Co-Prosperity Loan supports job creation and SMEs in cooperation with large corporations and public agencies.
They have also developed multiple products to help companies with highly competitive technologies obtain the funds they need in a timely manner for successful commercialization.
IBK New Growth Vision Loan is a preemptive response to the fourth industrial revolution. It provides companies that meet the criteria for new growth engines with systematic financial support and various non-financial services
IBK Smart Factory Loan works in tandem with government support for ICT smart factories to contribute to the development of globally competitive companies. With the loan, ‘hidden champion’ companies can receive timely funding to build and operate smart factories.
In response to internal and external changes in SMEs’ business environment, IBK is adopting big data, scraping and other fintech developments. With proactive measures that anticipate SMEs’ capital difficulties, they are making every effort to expand SME support, create jobs, and promote start-up companies.
Companies with promising technologies can take advantage of the CB (Convertible Bond) Issuance Loan, an investment product available at branches designed to encourage investment in promising technology companies. Based on their technology levels, borrowers can receive benefits like preferential interest rates.
ME Venture Development Fund Loan gives preferential support for technology commercialization by venture companies certified by the government or relevant organization. The borrower has to show it has officially recognized capabilities such as a recommendation from a pertinent institution or new equity investment.
Other products include Loan for Companies in Strategic Regions which offers preferential funding to companies located or planning to move into industrial complexes as well as Co-op B2B Purchasing Card Loan which finances group purchases of subsidiary materials that go through co-ops. With the introduction of such specialized products, IBK is strengthening its market power and solidifying its position as SMEs’ trusted supporter.
SME Support Services
The IBK Hidden Champion Exporters and Technologies Program provides comprehensive support to SMEs, from customized loans to non-financial services. The companies selected as IBK’s ‘hidden champions’ possess globally competitive exports or technologies.
In 2017, they designated 68 IBK hidden champions and 53 IBK next-generation hidden champions with plans to respectively add some 60 and 50 companies to the two categories in 2018. The program will help relatively unknown companies with high growth potential succeed on the global stage.
IBK Friend Service offers SMEs complimentary access to contents about leadership, business trends and more via the IBK website for bank customers. CEOs and board members can gain economic/management knowledge and sharpen their decision-making skills. In a December 2017 survey, 99% of the respondents said they were ‘very satisfied’ with the service. The service has gained wide popularity among SME executives looking for reference materials or developing leadership capabilities.
IBK Corporate Real Estate Advisory Service gives users the opportunity to take advantage of our alliance with a real estate consulting firm to request guidance on real estate transactions, investment analysis, and real estate management strategies. The service is used extensively to meet the real estate consulting needs of our SME customers, manage VIP customers, and to attract customers from other banks.
Services for SMEs
They are committed to fulfilling our role as a leader in SME financing and offer many customized services for SMEs at all stages of growth. Our services focus on expanding financial support and professional consultations for promising SMEs.
