South Korea’s state-run Industrial Bank of Korea (IBK) will make an inroad in Poland via a partnership with PKO Bank Polski S.A. to provide financial services to Korean companies operating in eastern Europe.
IBK said on Friday that it signed a comprehensive memorandum of understanding with PKO Bank, becoming the first Korean lender to forge a partnership with a Polish financial institution.
Under the MoU, the two banks will work together to provide financial support to companies advancing into each of their countries, cooperate on foreign exchange, international finance, and investment banking operations, and provide operational support to offices and branches opening in each of their countries.
PKO Bank is the largest state-run commercial lender by asset that manages 1,192 financial outlets across the eastern European country. The latest partnership was forged as part of IBK’s overall global strategy to provide financial support to small- and mid-size Korean companies advancing into overseas markets. IBK plans to open a representative office in Poland to better service about 400 Korean companies engaged in automobile and electronics sectors operating in Poland.
Korea’s small- and mid-size companies have been aggressively entering Poland as suppliers of large companies investing in electric vehicle battery production facilities.
An unnamed official from IBK said that the latest MoU is a start off to advancing into Poland and a good opportunity to learn local financial service knowhow ahead of office or branch opening. It will allow the lender to provide improved financial service to small- and mid-sized companies operating in eastern Europe, the official said.
With the latest partnership, the number of foreign lenders that partner with IBK to 17. IBK that has been putting out efforts to establish a global network since 2012 has already joined hands with Germany’s Deutsche Bank and Spain’s Banco Santander.
By Lee Seung-yoon and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]