Artificial intelligence is evolving beyond a tool for enhancing financial efficiency to become a crucial infrastructure for boosting national industrial competitiveness. In South Korea, where small businesses form the backbone of the economy, AI has the potential to enhance productivity and nurture future industries. Jang Min-young, president of IBK Industrial Bank, is redefining the bank's role amid these changes.
Jang envisions transforming IBK from merely a policy finance institution that provides loans into an industrial partner that supports small business growth through AI and data. He is spearheading the 'IBK Productive Finance 30-300 Project,' which aims to supply 300 trillion won in productive finance by 2030, while also expanding financial support for future industries such as AI, semiconductors, and energy.
Jang's entrepreneurial spirit in finance seeks to utilize AI not just as a tool for operational innovation but as a financial platform that enhances South Korea's industrial competitiveness.
In his inauguration speech, Jang emphasized that "IBK must leap beyond being a mere provider of funds to become a financial partner leading industrial restructuring." He believes that in an era of low growth and industrial transformation, policy finance must adopt new roles. Long-term funding and financial support are essential for the growth of future industries like AI, semiconductors, and energy, with IBK positioned at the center of this effort.
This philosophy reflects the belief that AI is not just a digital innovation but a national strategy that reshapes industrial competitiveness, necessitating the evolution of policy finance.
The flagship project under Jang's leadership is the 'IBK Productive Finance 30-300 Project.' From 2026 to 2030, this initiative aims to allocate over 300 trillion won to small and venture businesses, as well as advanced industries. The comprehensive financial strategy includes 250 trillion won for small and micro businesses, 20 trillion won for venture capital and infrastructure, and support for consumer-focused finance and subsidiaries.
Jang views this not merely as a policy goal but as a national growth strategy for the AI era, focusing financial resources on AI, semiconductors, and innovative enterprises to transform South Korea's industrial structure.
Immediately after taking office, Jang launched the 'IBK National Growth Fund Promotion Team.' This organization consolidates the capabilities of not only IBK but also IBK Capital, IBK Investment Securities, IBK Asset Management, and IBK Venture Investment to implement the government's National Growth Fund. The initiative has begun with an investment of 1.35 trillion won in the advanced strategic industry ecosystem, intensifying support for innovative companies in AI, semiconductors, and energy.
Jang believes that in the AI era, competition cannot be limited to individual banks; the entire financial group must operate as a unified platform.
Jang is leveraging AI not just for customer service but as a core technology for assessment and risk management. IBK has established a dedicated team for productive finance assessments, ensuring reviews are completed within three business days. Concurrently, the bank is enhancing its data-driven credit evaluation system to better reflect the actual management data of small and micro businesses.
This approach represents a new model of inclusive finance that increases accessibility through the use of AI and data.
Jang also emphasizes that AI should transform organizational culture. Starting in 2026, IBK will provide 'Vibe Coding' training and education on the generative AI platform 'IBK GenAI' for its headquarters staff. In the first half of the year, approximately 1,000 employees received training, with plans to expand this initiative to branches nationwide. He stresses that "good judgment comes from continuous learning," aiming to integrate AI as a work tool for all employees.
Jang believes that AI is not just a technology for select experts but a new language that enhances productivity across the entire organization.
Jang sees productive finance in the AI era as a pathway to strengthen the capital market. He has established the 'IBK KOSDAQ Activation Task Force' to expand corporate analysis reports and enhance support for investment presentations and IPOs. IBK Investment Securities has created a KOSDAQ research center, and IBK Asset Management is preparing a KOSDAQ150 ETF. The goal is to build an AI-based financial ecosystem that supports the growth of small and venture businesses.
He emphasizes that reducing information asymmetry and ensuring that quality companies are accurately evaluated is also a critical role of policy finance.
Jang's entrepreneurial spirit in finance can be summarized as "nurturing the future of small businesses through AI." He views AI not merely as a tool for operational efficiency but as a national strategy for enhancing industrial competitiveness. The 300 trillion won productive finance initiative, the National Growth Fund, AI-driven credit evaluations, generative AI training, and KOSDAQ activation strategies all stem from the same philosophy.
IBK aims to be more than just a bank that lends money; it seeks to become a growth platform that supports innovation in South Korea's small businesses through AI and data. In the AI era, IBK is not just a financial institution but a partner in industrial innovation, with Jang Min-young at the forefront of this transformative policy finance leadership.
Strengths:
Jang's leadership combines 35 years of experience in corporate finance and risk management at IBK and IBK Financial Group, effectively integrating policy finance with AI. The 300 trillion won productive finance project and support for AI, semiconductors, and energy industries, along with the National Growth Fund initiative, represent IBK's unique competitive advantages.
Weaknesses:
As a policy finance institution, IBK is significantly influenced by government policies, and its small business-centric portfolio may lead to financial health concerns during economic downturns. The AI strategy is still in its early implementation phase, with challenges remaining to achieve visible results.
Opportunities:
The government's focus on productive finance and AI industry development could further expand IBK's role. As AI-based credit evaluations and small business data utilization become more sophisticated, IBK has the potential to grow into South Korea's leading AI corporate finance platform.
Threats:
Risks of small business insolvency due to high interest rates and economic slowdown, intensified competition from internet banks and private banks in corporate finance, and the rapid pace of AI technological change remain ongoing threats. Balancing the expansion of policy finance with soundness management is also a critical challenge.
* This article has been translated by AI.
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