State lender to steer funds into AI and chips under Lee administration priority
Industrial Bank of Korea (IBK) President Chang Min-young officially commenced his tenure on Friday, outlining a comprehensive plan to allocate 300 trillion won ($207 billion) by 2030. This significant investment aims to bolster the government’s “productive finance” initiative, designed to stimulate economic growth.
During his inauguration ceremony, President Chang emphasized the challenges faced by small and medium-sized enterprises (SMEs) due to sluggish growth and industrial restructuring. He stated, “IBK must evolve beyond its role as a mere provider of capital and become a strategic financial partner, actively driving industrial transformation.”
This five-year commitment directly supports a key policy objective of President Lee Jae Myung’s administration. The administration seeks to channel funds into investments that prioritize enhanced productivity, moving beyond traditional interest-based lending models.
IBK, a state-run bank dedicated to supporting SMEs, intends to direct substantial funding towards strategic sectors poised for future growth, including artificial intelligence (AI), semiconductors, and autonomous driving technologies.
President Chang announced plans to overhaul IBK’s credit evaluation system. The revamped system will place greater emphasis on technological capabilities and growth potential. Furthermore, IBK aims to expand its presence in capital markets through the establishment of a dedicated task force.
A core element of President Chang’s vision is the integration of artificial intelligence across IBK’s operations. “By combining our extensive corporate finance data with AI, we can significantly enhance analytics, credit screening processes, and overall soundness management. This integration will also enable us to deliver highly personalized digital financial services,” he explained.
Addressing the topic of digital assets, President Chang described stablecoins as “a critical infrastructure technology with the potential to reshape capital flows.” He affirmed that IBK will adopt a digital asset model that prioritizes stability and adheres to all relevant regulations.
President Chang’s inauguration follows his formal appointment approximately one month prior, which was preceded by some resistance from the bank’s labor union concerning wage-related matters.
Born in 1964, Chang Min-young previously held the position of chief executive officer at IBK Asset Management. He initially joined IBK in 1989 and has since held various leadership roles, including Vice President of the Risk Management Group and Head of Asset Management.
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