The State Bank of Vietnam (SBV) has licensed Industrial Bank of Korea (IBK)'s Vietnam subsidiary to establish a wholly foreign-owned, locally incorporated bank.

This is the first bank the SBV has approved, whether domestic or foreign, since 2008.

The information was revealed at a meeting between Mr. Nguyen Ngoc Canh, Deputy Governor of the SBV, and Mr. Chang Min Young, chairman and CEO of IBK, in Hanoi on April 22.

IBK will become the third Korean bank licensed to operate in Vietnam as a wholly foreign-owned bank, after Shinhan Bank and Woori Bank.

This establishment is aimed at supporting small and medium-sized enterprises, with around 75% of its outstanding loans concentrated in the segment, according Mr. Chang.