IBK Industrial Bank is prioritizing productive finance, moving beyond support for small and medium-sized enterprises (SMEs) to focus on nurturing innovative industries and building a corporate growth ladder. The bank plans to invest 300 trillion won by 2030 to expand financial support for advanced industries, venture companies, and regional economic revitalization, laying a foundation for national growth.
According to the financial sector on June 25, IBK has established productive finance as a core medium- to long-term strategy, concentrating its efforts on increasing funding for technology-driven companies and future growth industries.
Productive finance goes beyond merely supplying funds to companies; it aims to allocate financial resources to areas that can lead to real economic growth, such as technological innovation, enhancing industrial competitiveness, and job creation. IBK plans to strengthen its role as a policy finance institution by expanding support for advanced industries, venture startups, and strategically important regional industries.
To achieve this, IBK aims to provide a total of 300 trillion won in productive finance by 2030. This includes increasing financial support for national strategic industries such as semiconductors, artificial intelligence (AI), and biotechnology, as well as SMEs with high growth potential, thereby enhancing overall industrial competitiveness.
The bank is also reinforcing its financial support system for innovative companies. IBK operates a dedicated review team for productive finance to ensure that companies with technological capabilities can secure funding in a timely manner. This specialized team conducts assessments based on growth potential and technological strength, allowing companies with insufficient collateral or financial performance to receive quicker financial support.
This strategy has already led to an increase in loan performance. As of the end of the first quarter of this year, IBK's technology credit loan balance stood at 133.9493 trillion won, up approximately 13 trillion won from about 120 trillion won during the same period last year. This represents 41% of the total loan balance across the banking sector.
IBK is consistently expanding its funding for companies with technological prowess and innovation. The balance of SME loans reached 264.244 trillion won in the first quarter, a 4.2% increase from 253.663 trillion won in the same period last year. Despite the challenges posed by economic slowdown and high interest rates, the bank continues to provide stable funding, fulfilling its role as a policy finance institution.
In addition to quantitative growth, IBK is also focused on improving financial accessibility. The bank is currently reviewing the appropriateness of its interest rate calculation methods based on credit ratings and is working to establish a more rational credit assessment system. The aim is to enhance the effectiveness of financial support by comprehensively reflecting a company's growth potential, technological capabilities, and business outlook, rather than relying on uniform evaluations.
The financial sector anticipates that IBK's expansion of productive finance will have a positive impact on the overall domestic industrial ecosystem. Increased funding for innovative and early-stage growth companies, which are relatively difficult for private financial institutions to access, is expected to foster new industries and create jobs.
* This article has been translated by AI.
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