Vietnam’s VnExpress reported on April 24 (local time) that Nguyen Ngoc Canh, deputy governor of the State Bank of Vietnam, disclosed the decision a day earlier during a meeting with Jang Min-young, IBK’s chairman and CEO. IBK became the third South Korean bank to obtain an operating license in Vietnam, following Shinhan Vietnam Bank and Woori Vietnam Bank. Canh said South Korea currently has the largest number of financial institutions and banks in Vietnam.
Financial Services Commission Chairman Lee Eok-won wrote on X on the same day that the president’s visit had “expanded the territory of K-finance,” as he outlined key outcomes reached in Vietnam.
The most notable result was IBK’s final approval for its Vietnam unit, which officials said would serve as a key base to support South Korean small and medium-sized companies operating there. In January, Korea Development Bank’s Hanoi branch also won approval after seven years. Lee said South Korea has “overwhelming achievements,” including establishing the most banks and the second-largest number of foreign bank branches in Vietnam.
◆ As of March 2026, Vietnam has nine wholly foreign-owned banks
As of the end of March, Vietnam had nine wholly foreign-owned banks in operation, including Shinhan Vietnam Bank and Woori Vietnam Bank. The most recent foreign bank to receive a license before IBK was UOB Vietnam, approved in 2017. IBK’s entry makes it the 10th wholly foreign-owned bank, marking the first new license in nine years.
The State Bank of Vietnam views the SME sector as a core growth engine, citing its role in job creation and the social safety net, as well as large funding needs at Vietnam’s current stage of development. Canh said he expects IBK, which has more than 60 years of experience in SME finance, to provide comprehensive financial services not only to South Korean companies in Vietnam but also to local SMEs.
Jang said IBK was founded to support SMEs and that about 75% of its outstanding credit is concentrated in that sector. He said the bank’s experience building and operating financing mechanisms for SMEs would be put to practical use in cooperation with Vietnam.
Founded in 1961, IBK is 68.5% owned by the South Korean government. It currently operates two branches in Vietnam and is expected to expand its local business following the wholly foreign-owned bank license.
During the visit, the Korea-Vietnam Financial Cooperation Forum shared examples of bilateral cooperation in insurance, capital markets, nonperforming loans and QR payments. Lee said he would work to further broaden financial cooperation between the two countries, adding that the Financial Services Commission would be a “running mate” as K-finance expands globally.
The two countries also moved to speed up cooperation on payment infrastructure. The Korea Financial Telecommunications & Clearings Institute and Vietnam’s NAPAS signed a contract to link QR payments during the visit. Once the service launches within the year, users will be able to use the same payment apps they use in South Korea in Vietnam without separate currency exchange. Lee said the change would also reduce fees by about 2 percentage points per transaction, calling it a practical benefit for travelers, as Vietnam is the second-most visited destination for South Koreans.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.