Industrial Bank of Korea






79, Ulchiro, Chung-gu, Seoul, Korea 100-758

Phone: +82-31-888-8000
Fax: 82-2-729-7003
e-mail: N/A



  • #672 Global 2000 2021
    • #1128 Sales
    • #522 Profit
    • #121 Assets
  • World’s Best Banks 2021
  • #109 World’s Best Employers 2020




Kim Yoon-kee




Report created by Emilia Sharples

Industrial Bank of Korea

SECTIONS :  Sustainability  •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

The Industrial Bank of Korea is an industrial bank headquartered in Jung-gu, Seoul in South Korea. It was established in 1961 and is owned by the Government of the Republic of Korea (South Korea). From 2013 to 2016, Kwon Seon-joo was its CEO, and thus became South Korea’s first female bank CEO.

IBK’s corporate vision is contained in the motto, “IBK, Financial Partner for a Better Future”. The motto reflects their commitment to creating new value and improving the everyday lives of their customers and other stakeholders, while also contributing to the economic growth of Korea

The trust business offers annuities and estates trust. The loan business provides loans for equipment, business transactions, corporations, and strategic methods. The exchange business provides funds for letters of credits and foreign exchange services. The credit business offers credit services including to individuals and corporations.

Company Sustainability Activity

Industrial Bank of Korea is committed to supporting small and medium-sized enterprises (SMEs) by providing them with tailored financial support. For instance, for SME vendors, to large corporations, a shared growth program is offered in cooperation with large corporations to promote win-win financial solutions.

 For those in the renewable energy business or green industries, various environmental financial products are on offer to help create a low carbon economy. Over the next 5 years, IBK will finance a total of KRW 100 trillion for early-stage SMEs through its 600 branches nation-wide and 27 networks overseas. This is expected to result in incubation of over 300 start-ups and thereby create 100,000 new jobs.

The bank is also committed to sustainable management practices, based on strict compliance with laws and regulations, strong ethics, and a sense of responsibility, through which the bank will maintain the trust customers have placed in them.

SME Investing and Sustainable Financing

  • Continues to play a leading role in supporting SMEs experiencing a shortage of funds.
  • New loans worth KRW 8.4 trillion.
  • IBK’s grand total of outstanding loans amounted to KRW 173.2 trillion in 2016. SME loans made up KRW 134.4 trillion, or 77.6% of the total.
  • IBK’s market share of SME loans stood at 22.6%, allowing it to retain the number one position in the industry.

Introduced financing products and services

  • “Job Creation Plus Loan”
  • “IBK start-up 3 Plus Program”
  • “IBK Job World for SMEs”
  • “IBK New Growth Vision”
  • i-One Small Business Loan” to support self-employed business people
  • “IBK New Hope See Loan” to support low-income families

 Establishing a sustainable job creation system

  • Scale-up financial platform: helps startups create and retain jobs
  • Cycle-up financial platform: protects jobs
  • Goal to create 100,00 jobs (20,000 jobs annually for the next five years)

IBK Social, Green and Sustainability Bond Framework

  • Four key pillars of the SBP, GBP and SBG: the use of proceeds, the process for project selection and evaluation, management of proceeds and reporting.
  • IBK has various environmental objectives that are in line with the GBP

Project Evaluation and Selection

  • The Asset Evaluation and Selection Process is a key process in ensuring that the assets financed by the IBK’s Social, Green or Sustainability Bond(s) are allocated to projects and assets which meet the criteria in the IBK Social, Green and Sustainability Bond Framework.

 Transparency in reporting

  • IBK commits to a high level of reporting.
  • In the event of new developments, it publishes a Progress Report within one year of issuance.
  • Discloses allocation of proceeds (Allocation Reporting) and the potential social and green impact (Impact Reporting).
  • Reports made public on IBK’s Investor Relation website.


  • Establishment of the ‘i-ONE JOB’ portal
  • Welfare support for the employees of SMEs
  • Developed a KRW 60 billion fund for companies that create jobs
  • Opened childcare centres for employees of SMEs (Namdong Industrial Complex, Gumi 4 Industrial Complex)
  • Align their practices with the UN’s SDGs in a clear and transparent manner
  • Annual reporting on their policies and progress
  • Sustainability is integrated into IBK’s business strategy


Social Impact

  • Support the improvement of SME job quality by raising KRW 60 billion by 2022.

Investments/ Economic Growth

  • Expand facility investments to KRW 15 trillion by 2022, implement special provisions when making investments.


Investments/Economic Growth

  • Surpassed the annual target of KRW 45 trillion set in 2018 and reached funding of KRW 51.2 trillion
  • Invested KRW 339.7 billion in 2018 to liberate SMEs from loan-dependent fundraising

Inclusivity, Diversity, and Social Impact

  • Operation of the IBK Women CEOs Club
  • Number of SME customers passed the one million mark in December 2013 and reached 1.3 million in December 2016.


UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Operation of a fleet of free food trucks called ‘IBK Food Trucks of Love’.
  • Emergency relief work in Indonesia.

SDG 4: Quality Education

  • Global volunteer work aimed at improving the educational environment
  • IBK Hope for the Youth Mentoring

 SDG 5: Gender Equality

  • From 2013 to 2016, Kwon Seon-joo was its CEO, and thus became South Korea’s first female bank CEO.
  • Opening of childcare centres for SME employees.
  • Recruitment of female employees through socially fair employment.
  • Operation of the IBK Women CEOs Club.

SDG 7: Affordable and Clean Energy

  • Renewable energy lending and investments.

SDG 8: Decent Work and Economic Growth

  • Lead technology financing for SMEs.
  • Champion environmental management of SMEs.
  • Co-up Financing (Scale-up financing, Level-up financing, Cycle-up  financing).

SDG 9: Industry, Innovation and Infrastructure

  • Development of a plan for opening the IBK Indonesia bank.

SDG 10: Reduced Inequalities

SDG 11: Sustainable Cities and Communities

  •   Launch of the IBK Eco Tour Project program for people with disabilities.
  •   Green Card Program.

SDG 16: Peace, Justice and Strong Institutions

  •   Provision of ethical compliance training at each stage of an employee’s life cycle.
  •   Operation of an ethical misconduct reporting system.
  •   Implementation of the clean contract system. 

Secondary SDGs: 13, 17 

Overall, IBK’s Social, Green and Sustainability Bond Framework is transparent and many of its practices will result in meaningful social and environmental impact; it aligns with the SBP, GBP and SBG.

Elements of the Framework that stand out include that the eligible social and green categories in IBK’s Framework are outlined within the bank’s public reporting as material issues. Moreover, IBK addresses its social and environmental impact areas through customized financial products which also advance several SDG goals and targets. 

They have multiple listings and awards and have achieved ISMS, ISO/IEC27001, and CCM certifications. 

IBK remains involved in a developing and emerging market, where potential risks associated with the

projects are potentially greater, encouraging IBK to seek opportunities to strengthen its social and environmental risk identification procedures.

Though IBK is not a signatory to the Equator  Principles or other similar industry initiatives that promote responsible finance, IBK is unlikely to have exposure to risks often linked with lending to large-scale infrastructure projects. They have also included third-party reporting from Sustainalytics, whereby information is unbiased and transparent.

IBK  has developed internal systems and plans to establish a  Social, Green and Sustainability Bond register to record the ongoing allocation of net proceeds from the bond. IBK commits to disclose its  Social,  Green, or  Sustainability  Progress  Report within one year of issuance in order to promptly report on the allocation of proceeds and the potential social and green impact.

However, for the company’s lack of focus on climate action protocols, it has been rated a C on the Impakter Index. 

Analyst Outlook: Neutral

Despite many successful practices, the Industrial Bank of Korea appears limited and is much more people-focused, having less active participation in renewable energy funding and actual direct environmental concerns. The bank would benefit from more direct and concrete future plans and a broader scope of engagement.

Key Points

  • Acknowledge and align their own initiatives with the UN SDGs. 
  • Implement sustainable practices through their Social, Green and Sustainability Bond Framework in every aspect of their organisation.
  • Achieved a number of certificates.
  • Transparent and frequent reporting.
  • Lack clear direction for future goals and targets.
  • Aid and relief and community work is strong but unfocused.
  • No procedures in action outside of the Bond Framework.
  • Fitch Affirms Industrial Bank of Korea at ‘AA-‘; Outlook Stable
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