HÀ NỘI — The Industrial Bank of Korea (IBK) Vietnam, a wholly foreign-owned bank backed by South Korea’s Industrial Bank of Korea, will officially begin operations on September 25, adding a 10th fully foreign-owned bank to Việt Nam’s banking market.

IBK Vietnam has charter capital of VNĐ7.3 trillion (US$278 million). Its parent, Industrial Bank of Korea, was established in 1961 and is 68.5 per cent owned by the South Korean Government.

The State Bank of Vietnam granted IBK Vietnam a licence to establish and operate on March 24, 2026.

The bank is headquartered at Keangnam Landmark 72 in Hà Nội. Park Kyung Il is its legal representative and general director.

IBK Vietnam said it would provide banking and financial services permitted under Vietnamese law, with a focus on serving customers and supporting businesses.

The bank has had a presence in Việt Nam since 2008, when it opened a branch in HCM City. It later opened a Hà Nội branch in 2013 and submitted an application to establish a wholly foreign-owned bank in 2017.

In late July, the central bank's Credit Institutions Supervision and Management Department approved the addition of debt purchase to IBK Vietnam's licensed activities.

IBK Vietnam's launch brings the number of wholly foreign-owned banks in Việt Nam to 10. They are IBK Vietnam, Shinhan Vietnam and Woori Vietnam from South Korea; UOB Vietnam from Singapore; HSBC Vietnam and Standard Chartered Vietnam from the UK; Public Bank Vietnam, CIMB Vietnam and Hong Leong Vietnam from Malaysia; and ANZ Vietnam from Australia.

IBK has previously expressed interest in expanding its role in Việt Nam's economy. At a meeting with Deputy Prime Minister Hồ Đức Phớc in September last year, Kim Sung Tae, then chairman and CEO of IBK, said the bank hoped to support small- and medium-sized enterprises, participate in infrastructure projects and provide financial investment in Việt Nam.

Under the current regulations, foreign banks must meet strict financial and governance requirements, including five consecutive years of profits and total assets of at least $10 billion. — VNS