DGB Daegu Bank Applies for Conversion Approval to Commercial Bank

Reborn as the 'First New Commercial Bank in 32 Years' with Government Approval
Presenting the Vision of a 'New Hybrid Bank Growing Together with Customers Nationwide'

DGB Daegu Bank announced on the 7th that it has applied to the financial authorities for approval to convert into a commercial bank.

This application follows the "Approval Method and Procedure for the Conversion of Regional Banks into Commercial Banks" announced by the government on the 31st of last month. Since DGB Daegu Bank already has the necessary human and physical resources and operates as a bank, it skipped the preliminary approval process and proceeded directly to the main approval.

Upon receiving the main approval after review by the financial authorities, DGB Daegu Bank, established in 1967 as the "first regional bank in Korea," will be reborn as the "first regional bank converted into a commercial bank" and the "first new commercial bank in 32 years" since Peace Bank in 1992.

Since expressing its intention to convert into a commercial bank in July last year, DGB Daegu Bank established a "Commercial Bank Conversion Promotion Team" and, together with DGB Financial Group, formed and operated a "Commercial Bank Conversion Task Force (TFT)" to meticulously prepare a business plan for after the conversion.

DGB Daegu Bank incorporated the vision of becoming a "New Hybrid Bank Growing Together with Customers Nationwide" into its business plan. The "New Hybrid Bank" represents a new type of bank that combines the advantages of internet-only banks, such as digital accessibility and cost efficiency, with the strengths of regional banks, including expertise in financing small and medium-sized enterprises.

Furthermore, to "grow together with customers nationwide," it presented eight major commitments targeting corporate and individual customers, fintech companies, and local communities, including ▲ expanding relational finance to small and medium-sized enterprises with medium credit ratings nationwide ▲ conveniently providing competitively priced products through digital channels. Based on this, DGB Daegu Bank stated it will lead meaningful changes from three perspectives: ▲ banking industry ▲ financial consumers ▲ national economy.

First, by utilizing the business know-how accumulated over 57 years since its founding in relational finance and inclusive finance, it plans to rapidly stimulate competition within the banking sector for "small and medium-sized enterprises and medium-to-low credit borrowers" who urgently need financial support amid difficult economic conditions, and provide better services at lower costs (interest rates) to financial consumers nationwide, allowing them to experience tangible competitive effects. From the national economic perspective, it announced the emergence of the "most regional nationwide bank," the only commercial bank headquartered in a region, which will help the prosperity of all regions. By achieving economies of scale through the conversion to a commercial bank, it aims to expand regional capital supply and overcome the crisis of regional extinction through customized financial supply tailored to regional needs, thereby contributing to balanced national development as a new commercial bank.

Meanwhile, to establish a new identity as a nationwide commercial bank, DGB Daegu Bank plans to change its name to "iM Bank." However, in the Daegu and Gyeongbuk regions, the "Daegu Bank" brand will be used alongside iM Bank to preserve its 57-year history.

Regarding its branch network, it plans to establish key branches in all administrative districts nationwide, actively utilize outbound sales channels, form open partnerships with platform companies leveraging the advantages of separating financial product manufacturing and sales, and build a customer-friendly and productive channel network through comprehensive upgrades of digital apps such as iM Bank and IT systems.

Additionally, it plans to establish the highest level of internal control and governance system in Korea by the first half of this year through groundbreaking reforms such as early adoption of accountability structures, full application of AI-OCR, expansion of digital inspection techniques, and appointment of dedicated internal control team leaders. It will continue soundness management after conversion by fully upgrading credit evaluation models and introducing a systematized credit review system.

Hwang Byung-woo, President of DGB Daegu Bank, said, "We will do our best to promptly obtain approval for conversion into a commercial bank," adding, "Unlike existing large commercial banks, we will become a new commercial bank that embraces small and medium-sized enterprises and medium-to-low credit borrowers nationwide and grows together with the regions."

This content was produced with the assistance of AI translation services.