HCMC - The State Bank of Vietnam (SBV) has granted a license to Industrial Bank of Korea (IBK) to establish a wholly foreign-owned bank, marking the first such approval in nine years, according to SBV Deputy Governor Nguyen Ngoc Canh.

With the approval, IBK, which focuses on small and medium-sized enterprises, becomes the 10th wholly foreign-owned bank in Vietnam and the third from South Korea to receive a license to operate in the country. As of end-March 2026, Vietnam had nine wholly foreign-owned banks, including Shinhan Vietnam and Woori Vietnam. The most recent prior license was granted to United Overseas Bank (UOB) Vietnam in 2017. The SBV said SMEs are a key driver of economic growth, employment and social security, with strong demand for capital. IBK is expected to provide financial services to South Korean businesses in Vietnam and domestic SMEs, drawing on more than 60 years of experience. IBK President Chang Min Young said around 75% of the bank’s outstanding loans are directed to SMEs, and its experience in SME financing would support its operations in Vietnam. Founded in 1961 and 68.5% owned by the South Korean government, IBK reported total assets of US$385 billion and pre-tax profit of nearly US$2.8 billion in 2025. The bank currently has two branches in Vietnam.