IBK suggests a new role in finance that proactively and creatively resolves various problems facing SMEs as they grow. Going beyond a one-sided fund provider or financial supporter, IBK is realizing Co-up Financing that actively engages in development and growth of SMEs. IBK Co-up financing consists of Scale-Up, which strengthens incubating programs to help startups survive, Level-Up, which boosts competitiveness of SMEs by helping them advance into the global market, pursue digitalization and secure talented workers, and Cycle-Up, which prevents SMEs from going out of business through recoupment of investments, M&As, and liquidation. Appreciating both financial value and intrinsic value of SMEs, IBK is committed to actively promoting SME’s entrepreneurial pursuit for growth.
IPMI International Business School
Amelia Naim Indrajaya
In a stage of sluggish global economy, nurturing creative and innovative SMEs is indispensable. SMEs are valuable because their employment, production, and added-value creation activities help boost competitiveness in the industries and serve as a pillar of the national economy. However, the Korean economic structure poses serious problems to SMEs as large enterprises monopolize economic benefits by diversifying businesses. For example, they expand the number of subsidiaries and advance into businesses where SMEs have already gained foothold. Due to unequal distribution of talented workers, SMEs usually hire low-wage, temporary workers and suffer a shortage of technical professionals. On top of that, relatively fewer export items and sluggish investments in midto long-term growth of SMEs aggravate existing polarization between SMEs and large corporations.
1. Build a sustainable job creation system
2. Improve economic vitality by creating a startup ecosystem
3. Lead innovation-driven growth by expanding SME support
In cooperation with large corporations, mid-sized businesses, public institutions and local governments, IBK raises funds for shared growth with SMEs. The funds are provided to qualified SMEs at the right time, thus contributing to solving their financial difficulties. IBK also help SMEs in their early stage and high-growth stage to stabilize business operation by lowering interest rates according to each growth stage. In regards to job-creating SMEs, more financial support is offered to live up to the government’s job creation campaign. These activities create synergy and high efficiency in promoting cooperative business for shared growth. In 2017, a total of 8,364 SMEs received financial support worth about KRW 4.6 trillion and enjoyed the benefits of an interest cut of 2.63% maximum.
Direction of Supporting Environmentally-friendly Management
Kim Sung-tae, Senior Executive Vice President
Keep this story going! Share below!
Seoul, the Seoul Special City, KR
Business Website: https://www.ibk.co.kr/
Year Founded: 1961
Number of Employees: 10000+
Since the foundation, IBK has pursued ‘customer happiness’ as the ultimate goal and worked to be the true financial partner for the customers' success. Aside from the launch of “IBK Co-up Financing” comprising of three stages of Scale-up, Level-up, and Cycle-up financing. IBK is expanding the fundamental value of finance by working jointly with 8 subsidiaries, including IBK Capital, IBK Securities and IBK Insurance, which also helps to enhance non-interest income. Going forward, IBK will continue to stay committed to the customers as financial partner by proactively responding to the new economic conditions brought about by the 4th Industrial Revolution, utilizing SME financing know-how accumulated for over 50 years of their history.