Question 1

What is ICBC?

Accepted Answer

ICBC (Industrial and Commercial Bank of China) Korea is the South Korean operations of the world's largest commercial bank by total assets. Operating as a foreign bank in South Korea, ICBC specializes in facilitating trade and investment between China and Korea. The bank ranks among the top-tier foreign banks in South Korea, serving both corporate and individual customers with a focus on cross-border banking, trade finance, and currency services.

ICBC Korea serves over 800 corporate customers and more than 20,000 individual customers. It maintains its position among the top five foreign-invested banks in South Korea out of approximately 40 foreign banking institutions operating in the country.

Question 2

When was ICBC founded?

Accepted Answer

ICBC's parent institution was founded on January 1, 1984, when it was separated from the People's Bank of China to handle commercial and industrial banking operations. The bank was created as part of China's banking system reform to establish specialized commercial banks.

ICBC entered the South Korean market by establishing a representative office in Seoul in 1993, shortly after China and South Korea established diplomatic relations in 1992. During the Asian financial crisis in 1997, ICBC received approval for a full commercial banking license, and the Seoul representative office was upgraded to a full branch in December 1997, marking the beginning of ICBC's formal banking operations in South Korea.

Question 3

Where is ICBC headquartered?

Accepted Answer

ICBC Korea's main branch is headquartered in Seoul at the Taepyeongno Building, 73 Sejong-daero, Jung-gu. The Seoul headquarters occupies multiple floors (1F, 16F, and 18F) in this downtown location.

The parent institution, Industrial and Commercial Bank of China Limited, is headquartered in Beijing, China.

Question 4

Where does ICBC operate?

Accepted Answer

ICBC operates in multiple locations throughout South Korea, with its primary presence in the country's two largest metropolitan areas. The Seoul branch serves as the main hub, with additional locations including offices in the Daelim and Konkuk University areas of Seoul.

ICBC expanded beyond Seoul by opening a Busan branch in May 2002, making it the only Chinese bank in South Korea with branches in two major Korean cities. The Busan branch is located at ABL Life Building, 640 Jungang-daero, Busanjin-gu.

Question 5

What services does ICBC offer?

Accepted Answer

ICBC Korea provides comprehensive banking services across both retail and wholesale banking sectors. Personal banking services include Korean won and foreign currency deposits, currency exchange, international remittance (with specialized RMB pre-settlement remittance services to China), and banking cards.

Corporate banking services encompass corporate deposits, corporate loans, trade finance, import/export factoring, letters of credit, and risk participation services. The bank has established itself as a key player in facilitating business between Korean and Chinese companies, including major Korean conglomerates such as Samsung Electronics, LG Electronics, Hyundai Motor, POSCO, SK Telecom, Hyundai Heavy Industries, and GS.

Foreign exchange and derivatives are core strengths, with ICBC Korea designated as one of the first market makers for direct KRW-RMB trading by the South Korean government. The bank provides spot foreign exchange trading, FX options, and other hedging instruments.

Financial institution services include interbank lending, reciprocal loan agreements with Korean banks to support their Chinese subsidiaries, and risk participation programs. ICBC Korea has signed reciprocal loan agreements with several local banks, providing liquidity support to their Chinese operations.

Digital services include online remittance applications and exchange rate inquiry tools through their Korean-language website.

Question 6

What makes ICBC unique?

Accepted Answer

ICBC Korea's distinctive position stems from its role as a bridge between the Chinese and Korean economies. The bank was designated as one of the first market makers for direct KRW-RMB trading in South Korea's offshore RMB market, holding the largest market share among financial institutions in Seoul for RMB-KRW trading.

In the first half of 2015, ICBC Seoul Branch recorded a transaction volume of RMB 451.1 billion for direct RMB-KRW trading, demonstrating its dominant position in the Korean offshore RMB market. The bank has maintained consistent profitability, reporting over USD 70 million in annual profits with zero non-performing loans.

ICBC Korea's localization strategy sets it apart from other foreign banks. The bank focuses on serving top Korean conglomerates and World Top 500 multinationals, positioning itself as a mainstream Korean bank rather than merely serving Chinese businesses in Korea. This approach has earned recognition from the South Korean government, including the "President Award" conferred to former General Manager Cui Jiqian in 2008, and his designation as "Honorary Citizen of Seoul" in 2006.

The bank's comprehensive global network backing, with ICBC operating over 400 overseas institutions in 48 countries, provides unique advantages for Korean companies expanding into China and third-party countries.

Question 7

What type of financial institution is ICBC?

Accepted Answer

ICBC Korea operates as a foreign bank branch (외국은행 지점) under South Korean banking regulations. It is classified as an "associate member" of the Korea Federation of Banks, a designation for foreign banking institutions operating in the country.

As a foreign bank branch, ICBC Korea operates under a full commercial banking license approved by Korean financial regulators, allowing it to conduct both retail and wholesale banking activities. The bank is supervised by the Financial Supervisory Service (FSS) and Korea Financial Intelligence Unit (KoFIU), and must comply with Korean banking regulations while benefiting from the financial strength and global network of its parent institution.

ICBC's parent company is a universal commercial bank—a joint-stock limited company partially owned by the Chinese government through entities including Central Huijin Investment and the Ministry of Finance. It ranks as the largest of China's "big four" state-owned commercial banks.

ICBC

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About ICBC in South Korea