Eighteen banks in South Korea have donated a total of 255.5 billion won, the equivalent of over USD 221.4 million, to the Microfinance Foundation, a program led by the South Korean Government to provide unsecured micro loans [1]. These banks will also, over the next 10 years, invest 700 billion won, the equivalent of over USD 603.9 million, in the Microfinance Foundation [1]. The funds for this investment will come from “‘dormant deposits’ – small accounts that have been idle for years at the contributing banks” [1]. Some of these banks are Korean banks including the state-run Korea Development Bank and the commercial bank, Hana Bank [1,2,3]. Other banks, such as Citi from the United States, are foreign commercial banks operating in South Korea [1,4]. The Microfinance Foundation intends to “open 20 to 30 regional units [to service the microloans] by May 2010 and raise that to 200 to 300 [units] in the next two or three years” [1].
By Christopher Maggio, Research Assistant
About:
Korea Development Bank
Description
The Korea Development Bank is a state-owned bank that attempts to impact the economic development of South Korea through various means. The bank made efforts to restructure ailing companies during the Asian financial crisis of the late 1990s and has more recently supported small and medium enterprises (SMEs) through financing and the provision of corporate banking. Ultimately, the Korea Development Bank intends to become a global investment bank offering “banking, securities, and capital & asset management” domestically and to foreign customers.
The Korea Development Bank does not report to the MIX Market, the microfinance information clearinghouse (http://www.mixmarket.org/)
Organization’s Website
http://www.kdb.co.kr/screen/jsp/IHEng/IHEngUKdb01010001E.jsp
Just the Facts
-Country of Incorporation: South Korea
-Year Founded: 1954
-Total Assets: USD 142.3 million (as of 31/March/09)
-Total Equity: USD 14.5 million (as of 31/March/09)
-Participant(s)/Backer(s)/Investor(s): Korean Government
-Sources of Funding: Debt and Equity
-Instruments: Loans, Securities
-Currency: KRW
-Governor: Euoo Sung Min
Contact Information
Korean Development Bank Headquarters
16-3 Yeoido-dong, Yeongdeungpo-gu, Seoul, Korea 150-973
Tel: (82-2) 787-6460 Fax: (82-2) 787-7896~8
Additional Resources
Korean Development Bank Financial Summary: http://www.kdb.co.kr/screen/jsp/IHEng/IHEngUKdb01050001E.jsp
Bibliography:
[1] Joong Ang Daily article entitled ’18 banks donate for microcredit’: http://joongangdaily.joins.com/article/view.asp?aid=2912641
[2] Korea Development Bank: http://www.kdb.co.kr/screen/jsp/IHEng/IHEngUKdb01010001E.jsp
[3] Hana Bank (in Korean): http://www.hanabank.com/
[4] Citi: http://www.citibank.com/us/home.htm
Source Article: http://joongangdaily.joins.com/article/view.asp?aid=2912641
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