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| Industrial Bank of Korea CEO Kim Do-jin |
Industrial Bank of Korea (IBK) CEO Kim Do-jin is visiting Indonesia to participate in the inauguration event for PT Bank IBK Indonesia slated for Sept. 19.
IBK acquired an 87.34 percent stake in PT Bank Agris in February 2018 and a 71.7 percent stake in PT Mitraniaga in April 2018. The Korean bank received approval for the acquisitions from the Financial Services Authority of Indonesia in January.
The merger of the two Indonesian banks led to the opening of IBK Indonesia on Sept. 5. It was the bank's first overseas M&A ever since IBK was established in 1961.
Kim vowed in his inauguration in January 2017 that he would do his best for the bank to clinch an overseas M&A deal during his two-year term. He also reiterated his promise during the bank's foundation anniversary ceremony last year, saying it's time for the bank to "expand its financial territory abroad."
IBK said it aims at developing IBK Indonesia as the country's largest corporate financing bank.
"Indonesia is one of the most important regional partners in the government's New Southern Policy where about 2,000 Korean firms are already operating," an IBK official said.
"IBK Indonesia will be a cornerstone of the bank's overseas expansion in Asia."
The official added IBK seeks to gain 25 percent of overseas earnings and 15 percent of overseas assets from IBK Indonesia by 2023.
The financial authorities there granted Bank Agris approval for foreign exchange services there so IBK Indonesia can immediately offer import- and export-related foreign exchange services for Korean firms in Indonesia.
Bank Agris operates 17 branches in Indonesia and Mitraniaga has 13. IBK Indonesia plans to open 25 more branches while setting up a new corporate desk, for not only Korean firms but also local firms there.
Under Kim's leadership, IBK has done its utmost to boost its presence in overseas markets as the bank's future growth engine.
Kim shared his goal to establish a transnational financial belt to connect major economies in Asia including China, Japan, Vietnam and India.
Of them, Indonesia was the first Southeast Asian country President Moon Jae-in visited since he introduced the New Southern Policy in December 2017.
