Jang Min-young, head of the Industrial Bank of Korea (IBK), said Wednesday that the bank will strengthen support for the KOSDAQ market, including publishing research reports and offering value-up consulting, so that small and medium-sized enterprises (SMEs) and venture companies receive fair valuations in the capital market.
Speaking at a press briefing for the "IBK KOSDAQ Boom-Up Day" held at a hotel in Yeouido, Jang said, "We will serve as a bridge connecting investors with companies that have strong technological capabilities and potential." He stressed that "revitalizing the KOSDAQ is a growth engine that will drive Korea's future growth." Through the KOSDAQ revitalization task force launched in March, Jang plans to address information asymmetry and undervaluation issues in the KOSDAQ market.
On the direction of inclusive finance, he said, "Inclusive finance means providing step-by-step support throughout every stage of the funding cycle." In particular, he hinted at the possibility of overhauling the current system in which loan rates are linked to credit rating frameworks. "If low-credit and high-credit borrowers repay principal and interest on time in the same manner, the low-credit borrower, who is charged a higher rate, would feel disadvantaged," he said. "We are reviewing whether this is reasonable from the financial consumer's perspective." He added, "Currently, when a delinquency of more than three months occurs, up to 60% of the principal can be written off. We are reviewing a plan to expand the write-off range for small loans."
Regarding the recent rise in loan delinquency rates, centered on SMEs, Jang said, "It is not a situation of major concern." However, he added, "If the high exchange rate and high inflation trends persist for another two to three months, the impact could materialize."
