Kim Do-jin, the new CEO of the state-run Industrial Bank of Korea, pledged to ramp up profits to better support small and medium-sized enterprises Wednesday.

At an inaugural ceremony held at the bank’s headquarters in central Seoul, Kim emphasized IBK’s role as a public financier for SMEs amid harsh economic conditions.

“SMEs are the foundation of the country’s economy and the reason why IBK exists,” Kim said. “SME finance should be enhanced further, supporting young entrepreneurs with brilliant ideas to start their own businesses without hesitating.”

To better support SMEs, the new IBK chief pledged to improve the bank’s profit structure by increasing profits in the fields of foreign exchange, investment banking and trust funds.

“Money-losing branches should be boldly shut down, while focusing on more lucrative ones,” he said.

Overseas expansion is essential, the CEO stressed.

“IBK will complete establishment of a financial belt in East Asia and consider further expansion into countries where our SMEs need us,” Kim said. “The bank will ramp up overseas profits by more than 20 percent from the current level.”

Kim, 57, has developed his career for more than 30 years at the state-run bank, where he has worked since 1985, serving in major posts including management strategy chief, corporate finance head and card marketing manager.

The Financial Services Commission recommended Kim as a nominee for IBK president Friday. The Korean Financial Industry Union expressed opposition to the nomination, raising suspicions about the nominee’s ties with the FSC. However, acting President Hwang Kyo-an approved the recommendation Monday.

Kim is facing a number of challenges including the introduction of the government-promoted merit-based salary system, appointments of the heads of IBK subsidiaries and the establishment of a holding company system.

By Song Su-hyun (song@heraldcorp.com)