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Korea Development Bank

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kdb
IndustryFinancial Services
Founded1954
HeadquartersSeoul, Korea (Republic of)
ProductsFinancial services
Number of employees
<2,200 (as of end 2008)
Websitekdb.co.kr

Korea Development Bank (kdb, Korean: 한국산업은행, Hanja: 韓國産業銀行) is a wholly state-owned policy bank in 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 and enhance the national economy. As Korea’s representative development financing bank, No. 1 arranger in Asia-Pacific project finance market and leader of domestic capital market, KDB has fostered the growth and heightened the competitiveness of strategic industries by meeting their changing financial needs. Following public policy, KDB facilitates the management normalization of troubled companies through corporate restructuring and consulting services, and provides capital for strategic regional development projects.

Through a network of forty domestic branches, seven overseas branches, five overseas subsidiaries, two representative offices, and three domestic subsidiaries, KDB provides a full range of financial services. It has more than 2,100 employees.

Business

This Bank completed its diversification into all major aspects of a modern-day securities firm, including investment banking, corporate banking and corporate restructuring. As Daewoo Motor’s lead creditor, K.D.B. spearheaded the car maker’s sale to General Motors in 2002. K.D.B. was also the lead creditor in other Korean corporate bankruptcies, including that of LG Card, a former unit of the giant electronics maker, LG Group.[1]

  • Corporate Banking
    • Corporate loans: Facility capital loans, working capital loans, etc.
    • Investments: Equity investments, public/corporate bonds, private placement securities, etc.
    • Guarantees: Debt guarantees, payment guarantees, bond guarantees, etc.
  • Investment Banking
    • M&A
    • Venture Capital
    • Bond Underwriting
    • Project Finance
  • International Banking
    • Syndication
    • Structured Finance
    • Trading
    • Trade Finance
    • NADFC
  • Corporation Restructuring
  • Consulting

Key financial data

Financial data in Billion KRW(Korean Won)[1]
Year 2004 2005 2006 2007
Total Assets 92,685 96,511 104,523 122,616
Net Interest Income 318 431 356 241
Net Income 1,078 2,421 2,101 2,048
Non-performing loan 1.59% 1.01% 0.84% 0.98%

Subsidiaries

KDB makes available a full line of financial services to meet the demands of domestic firms with the support of its domestic subsidiaries: KDB Capital Corporation, Daewoo Securities, and KDB Asset Management Corporation.

KDB Capital Corporation

Established in 1999 as a credit-specialized company, KDB Capital provides domestic companies with a variety of financial services, such as lending, lease, credit card, and venture capital.

Daewoo Securities

Main article: Daewoo Securities

Daewoo Securities, one of the largest and most successful brokerage firms in Korea, became a subsidiary of KDB in May 2000. Since then, Daewoo Securities has managed to maintain a stellar amount of growth, generally exceeding analyst expectations. Even during the recent credit crisis, Daewoo Securities has managed to come out much less damaged than its peers due to solid risk mitigation procedures. It has approximately 3,000 employees throughout the world and is listed on the KOSPI with a market capitalization of about 3.5 trillion won, making it one of the top 50 largest firms in South Korea. Recently, its investment banking arm has performed very well, and is currently the leading underwriter for IPOs. Furthermore, after the privatization of KDB, significant amounts of potential synergy between the two companies is expected; the expertise and information network of Daewoo Securities combined with the extensive assets and M&A know-how of KDB will indisputably result in the first Korean bank that may be able to compete with global financial companies.

KDB Asset Management Corporation

KDB Asset Management Corporation, formerly Seoul Investment Trust Management, became a subsidiary of KDB in May 2004. KDB Asset Management uses its asset and risk management expertise to provide asset management, investment trust management and investment advisory services to its clients.

  • [www.kdb.co.kr]

References

  1. ^ 2

1. Who is Korea Development Bank? New York Times, August 22, 2008

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