Korea Development Bank

Korea Development Bank

Headquarters of KDB in Seoul
Native name	한국산업은행
Company type	State-owned enterprise
Industry	Banking
Founded	1954 (1954)
Headquarters	Seoul, Republic of Korea (South Korea)
Number of locations	69 domestic, 22 international
Products	Financial services
Services	Corporate banking Investment banking
Revenue	US$3.2b (2018)
Net income	US$0.6b (2018)
Total assets	US$233.9b (2018)
Owner	Republic of Korea government (100%)
Number of employees	~3,200 (as of Dec 2018)
Rating	Aa2 (Moody's, 2018), AA (S&P, 2018), AA− (Fitch, 2018)
Website	www.kdb.co.kr

Korea Development Bank (KDB Bank) is a South Korean state-owned development bank which aims to encourage the industrial development of South Korea.

It was founded in 1954 in accordance with The Korea Development Bank Act to finance and manage major industrial projects to expedite industrial development of Korea.

As of 2018 it was the 61st biggest global bank according to the The Bankers top 1000 World Bank List. KDB Bank has not only fostered the growth of strategic industries but also facilitates the turnaround of troubled companies through restructuring and providing capital for strategic development projects.

Since 2000, it has diversified into investment banking services and operates as a Commercial and Investment Bank. Nevertheless, it is a major restructuring player and has saved a lot of big companies during major financial crisis, especially in 1997 Asian financial crisis and Financial crisis of 2007–2008.

History

KDB Bank was founded in 1954 to supply and manage major industrial capital to help develop Korean industries and the national economy. For the half century since then, KDB Bank has faithfully fulfilled its role as a government-run bank, anticipating and coping with changes in the economic and financial environment.

In the 1950's KDB supported the nation's economic rehabilitation by restoration of industrial facilities destroyed during the Korean War. This including basic industries such as electricity, coal, and cement.

In the 1970's KDB solidified the development of Korea, by providing funding to heavy-industry from energy to chemical and export-oriented industries. Meeting the government's 5-year economic development plan and the initiation of new financial businesses such as security underwriting and corporate bond guarantees.

In the 1980's KDB sustaining long-term industrial financing by intensive support for automobile and electronic industries. This was done by providing long-term facility financing in order to construct a stable growth base of the national economy. It also issued Industrial Finance Bonds (IFBs) overseas to create an independent fund, carrying out the role of the primary long-term facility financial institution.

During the 1990's KDB providing comprehensive corporate banking services to support technology-intensive industries including semiconductors. It also provided and supported comprehensive corporate banking services to help global expansion of corporate clients.

In the 2000's KDB moved to a new financial policy amid market-oriented economic changes. This included the completion of Universal Banking Services with the four core businesses: Corporate Banking, Investment Banking, International Banking, and Corporate Restructuring/Consulting. The support for nation-wide infrastructure projects and the resolution of financial distress by taking leadership in corporate restructuring.

During the 2010's KDB shifted its focus from support of major conglomerates to medium-sized enterprises. Assisted development under the Korean Fourth Industrial Revolution by widening the investment fund. Proactively engaged in corporate restructuring with support of the government of large corporations to avoid major financial distress.

Operations and services

KDB provides corporate Banking, investment banking, international banking and indirect financing and consulting services to businesses and banks in South Korea.

Key financial data

Financial data (in millions of US$)

Year	2018	2017
Total Assets	233,940	247,562
Total Liabilities	203,129	216,059
Shareholder's Equity	30,811	31,503
Net Operating Revenue	3,241	3,687
[Net Interest Income]	1,872	2,115
[Non-interest Income]	1,369	1,572
Provision for credit losses	(335)	1,287
Operating Income	2,038	720
Non-operating Income	(978)	730
Net Profit	635	529

Subsidiary

• KDB Capital - Founded as a leasing company and diversified into corporate banking and VC/PE investment
• KDB Infra (KDB Infrastructure Investments Asset Management) -Major infrastructure project investor in Korea
• KDB Investment - Corporate restructuring PEF for assets under KDB Bank