IBK subsidiary approval in Vietnam advanced on May 30 when the State Bank of Vietnam issued a preliminary confirmation letter. The Industrial Bank of Korea, a state-run lender, received this long-awaited signal almost eight years after submitting its application. This step formally begins the central bank’s regulatory review process.
The confirmation letter from Vietnam’s central bank indicates that IBK completed all necessary documentation. It also reflects a readiness to assess the bank’s compliance with domestic banking regulations. The Financial Services Commission (FSC) confirmed the announcement on Monday, marking a pivotal milestone for Korean financial diplomacy.
IBK subsidiary approval in Vietnam matters significantly for South Korea’s banking footprint in the region. Once the subsidiary launches, IBK will join Shinhan Bank and Woori Bank as Korea’s third official banking institution operating fully in Vietnam. This parity aligns South Korea with Malaysia as the top country with foreign bank subsidiaries in Vietnam.
IBK already operates two active branches in the country, based in Hanoi and Ho Chi Minh City. The bank plans to integrate these branches into its future subsidiary structure. This move will allow IBK to expand services, improve operational autonomy, and better support small and medium-sized enterprises.
Officials also linked this development to broader regional diplomacy. The FSC attributed the progress to consistent high-level dialogue between Korea and Vietnam. Recent summits, ministerial talks, and diplomatic exchanges helped open doors that remained closed for years. Vietnam last approved a foreign banking subsidiary in 2017 for Singapore’s United Overseas Bank.
IBK subsidiary approval in Vietnam follows similar progress by the Korea Development Bank (KDB). Earlier in May, the Vietnamese central bank approved KDB’s request to open a branch in Hanoi. KDB had waited six years for the green light and until now only maintained a representative office without direct banking operations.
FSC officials applauded these approvals as signs of growing financial trust between the two countries. They emphasized the role of Korean policy lenders in strengthening economic partnerships across Asia. IBK aims to support Vietnamese SMEs while KDB targets large-scale infrastructure investments.
Both banks stressed their commitment to shared development. IBK will provide accessible credit and support business expansion for Vietnamese and Korean firms. Meanwhile, KDB will fund industrial projects that contribute to regional connectivity and long-term growth.
The FSC described the dual confirmations as “unprecedented outcomes” driven by both strategic diplomacy and financial initiative. Authorities believe this model of cooperation could serve as a blueprint for future market expansion in Southeast Asia. They also see it as a way to reinforce Korea’s global financial influence.
As IBK awaits final regulatory approval, the spotlight remains on Vietnam’s banking authorities. Their decisions will shape regional banking dynamics and influence future foreign investment policies. For now, Korean lenders continue preparing for deeper engagement with Vietnam’s fast-growing economy.
