Industrial Bank of Korea to Begin Banking Services in China

Industrial Bank of Korea, South Korea's largest lender to small companies, plans to set up a locally incorporated company in China this year, Chief Executive Officer Yun Yong Ro said.

The Seoul-based bank also plans to open branches or offices in Russia, Vietnam, Indonesia and Mongolia, Yun said in a New Year message to employees.

Industrial Bank and its rivals in South Korea are seeking overseas expansion for growth. Hana Financial Group Inc., the country's fourth-largest financial services company, opened a locally incorporated firm in China last month.

Yun said today his bank's net income in 2007 exceeded 1 trillion won ($1.07 billion) for the second consecutive year. Total assets have grown to over 125 trillion won, he said.

Industrial Bank's net income in the first nine months ended Sept. 30, 2007, stood at 1.06 trillion won. That compares with full-year profit of 1.05 trillion won in 2006.