IBK President Jang Minyoung Considers Expanding Write-Offs for Small Delinquent Loans... Reviewing Credit Rating-Based Interest Rate System (Comprehensive)

Swift Resolution of Sangnoksoo's Long-Term Delinquent Bonds
Strengthening Inclusive Finance and Balanced Regional Development
Transition to an AI Native Bank and Response to Stablecoins

Jang Minyoung, President of Industrial Bank of Korea (IBK), held a press conference at the Conrad Hotel in Yeouido, Seoul on May 12, where he expressed his commitment to expanding inclusive finance. President Jang stated that the scope for write-offs of small delinquent loans would be broadened and that the appropriateness of the interest rate calculation method based on the credit rating system would also be reviewed.

When asked about the differences between inclusive finance at IBK and that of commercial banks, President Jang said, “I believe that a system is needed to support financial consumers throughout the entire process of funding, going beyond simply supplying low-interest capital.” He added, “We are internally reviewing whether the current credit rating system and the method for determining interest rates are truly reasonable from the perspective of financial consumers.”

He further noted, “Currently, IBK supports write-offs for up to 60% of the principal on substandard and below loans (those delinquent for more than three months). For small loans, we are also considering ways to further expand the write-off coverage.”

Regarding the long-term delinquent bonds held by ‘Sangnoksoo,’ a private non-performing loan processing company, in which IBK holds a stake, he commented, “We have already implicitly agreed to transfer (sell) these. Since there is no particular need to retain them, we will work to resolve this matter quickly.”

President Jang outlined three directions for IBK’s transformation: ▲ leading change in finance, ▲ driving innovation to realize potential, and ▲ management that creates results. Concerning productive finance, he stated, “The ‘332 Project’ is proceeding smoothly, and as of the first quarter, we are on track to meet our targets.” He continued, “We will focus more on inclusive finance and balanced regional development, areas that commercial banks tend to avoid. We plan to enhance our price competitiveness to provide greater support than other banks.”

He also emphasized accelerating the transition to an AI-based bank. President Jang said, “We will actively pursue the transformation into an ‘AI Native Bank’ to further advance IBK’s capabilities,” and added, “We plan to implement hyper-personalized AI banking, establish an AI-powered intelligent loan evaluation system, and build an AI agent-based work environment.” The expansion into new growth areas will be carried out in parallel. President Jang identified several major initiatives, including responding to the digital asset market through the issuance of a won-based stablecoin, enhancing overseas expansion strategies centered on global financial hubs, pursuing data monetization businesses, and establishing partnerships with external financial platforms.