IBK Receives Final Approval for Polish Subsidiary... Financial Services Commission's 'Financial Diplomacy' Bears Fruit

First Non-European Korean Bank Subsidiary Established
A Distinct Move from the Usual London and Frankfurt Bases
Financial Services Commission Held Chairman Meetings with KNF Since Last Year

Industrial Bank of Korea has obtained a banking license in Poland following cooperation with financial authorities. The Polish subsidiary of Industrial Bank of Korea is significant as it is the first non-European bank to establish its European headquarters in Poland. This achievement is seen as the result of comprehensive "financial diplomacy" by Korean financial authorities to support the overseas expansion of domestic financial institutions that assist local manufacturers operating in Poland.

According to the Financial Services Commission on November 20, the Polish Financial Supervision Authority (KNF) has completed the approval process for Industrial Bank of Korea's Polish subsidiary. The final license was granted after the preliminary approval for establishment was issued in November of last year. This milestone was achieved two years and six months after Industrial Bank of Korea began its efforts to enter the Polish market by opening its Wroclaw office in May 2023.

This case, along with the State Bank of Vietnam (SBV) beginning its review of Industrial Bank of Korea's Vietnamese subsidiary license in May, is cited as an example of how enhanced cooperation with overseas financial authorities has effectively facilitated the global expansion of Korean financial companies.

After Industrial Bank of Korea applied for approval to establish its Polish subsidiary in March 2024, the Financial Services Commission held two meetings with KNF officials, signing a memorandum of understanding (MOU) on banking supervision and continuously seeking local financial authorities' interest and support for Korean banks' entry into Poland.

When foreign banks enter the European market, they typically establish their European headquarters in London or Frankfurt and open branches in other countries. Industrial Bank of Korea is the first bank to establish its European headquarters in Poland as a subsidiary. Currently, in Poland, Industrial Bank of Korea (subsidiary), Woori Bank (branch), Hana Bank (branch), Export-Import Bank of Korea (representative office), and Shinhan Bank (representative office) are present.

Industrial Bank of Korea stated, "In the early stages, we plan to strengthen financial support for Korean small and medium-sized enterprises expanding into Eastern Europe, and ultimately, we aim to contribute to Korea-EU economic cooperation, focusing on sectors such as defense and energy."

The bank added, "As the only Korean bank established in Poland and the EU's local headquarters, we will serve as a bridgehead for expanding our business activities beyond Eastern Europe-covering major production bases in the Czech Republic, Hungary, and Slovakia-to Western Europe, including France and Germany, in accordance with the EU's single passport rights principle, which aims for a unified market."

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