Daegu Bank Applies for Conversion to Commercial Bank... Company Name Changed to 'iM Bank'

First Local Bank to Convert into a Commercial Bank

Reborn as a Commercial Bank After 32 Years

DGB Daegu Bank (President Hwang Byung-woo) applied for approval to convert into a commercial bank from financial authorities on the 7th.

This follows the "Approval Method and Procedure for Conversion of Local Banks into Commercial Banks" announced by the government on the 31st of last month. Since DGB Daegu Bank already has the personnel and physical facilities to operate as a bank, it skipped the preliminary approval process and directly applied for the main approval.

Once it passes the financial authorities' review and receives the main approval, DGB Daegu Bank, established in 1967 as the "first local bank in Korea," will be reborn as the "first local bank converted into a commercial bank" and the "first new commercial bank in 32 years" since Peace Bank in 1992.

Daegu Bank Headquarters.

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 TFT" to meticulously prepare business plans for after the conversion.

According to the business plan, DGB Daegu Bank presented the vision of a "New Hybrid Bank growing together with customers nationwide" after conversion into a commercial bank.

The "New Hybrid Bank" refers to 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. Additionally, to "grow together with customers nationwide," it proposed eight promises targeting corporate and individual customers, fintech companies, and local communities.

The promises presented by Daegu Bank include expanding relational finance to small and medium-sized enterprises with medium credit ratings nationwide, establishing a nationwide branch network, practicing outreach banking, conveniently providing competitively priced products through digital channels, expanding inclusive finance for financially marginalized groups such as medium- and low-credit borrowers, fostering mutual growth through open collaboration, strengthening support through nurturing early-stage companies and investing in innovative firms, supplying customized financial services reflecting regional characteristics nationwide, and fulfilling the role as a "commercial bank headquartered in Daegu."

Through these efforts, DGB Daegu Bank expects to bring about meaningful changes from three perspectives: the banking industry, financial consumers, and the national economy.

First, by utilizing the business know-how accumulated over 57 years since its founding, such as relational finance and inclusive finance, it plans to rapidly stimulate competition within the banking sector for "small and medium-sized enterprises and medium- and 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 heralds the emergence of the "most regional nationwide bank," the only commercial bank headquartered in a region, helping the prosperity of all areas. By achieving economies of scale through conversion into a commercial bank, expanding regional capital supply, and providing customized financial services tailored to regional needs, it aims to overcome the crisis of regional extinction and contribute to balanced national development as a new commercial bank.

DGB Daegu Bank announced plans to change its trade name to "iM Bank" to be newly recognized as a nationwide commercial bank by customers. However, in the Daegu and Gyeongbuk regions, the "Daegu Bank" brand will be used alongside iM Bank to preserve its 57-year history.

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

Additionally, it plans to establish a top-tier 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 also emphasized that it is fully prepared to manage soundness after conversion into a commercial bank by fully upgrading credit evaluation models and introducing a systematized credit screening system.

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

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