IBK Industrial Bank of Korea said on Dec. 15 it has built an international cooperation network in Luxembourg, local time on Dec. 12, to support South Korean small and medium-sized companies and startups expanding into the local market. Luxembourg is a global financial hub that is focusing on fintech and the aerospace industry as future growth engines.

CEO Kim Sung-tae met local financial authorities and bank officials and agreed to cooperate to help South Korean and Luxembourg companies enter the European market.

Kim first met Luxembourg Finance Minister Gilles Roth, who also chairs Luxembourg House of Financial Technology (LHoFT), and agreed to cooperate in finance and innovation and in supporting startups.

The bank also signed a memorandum of understanding with state-owned bank Spuerkeess, which has strengths in lending to small and medium-sized companies, to support SMEs and startups in both countries.

Under the agreement, the two sides will pursue a joint fund and financial support to support financing for companies expanding into each other's markets, support South Korean startups expanding into Europe, exchange research on SME finance, and cooperate in ESG and inclusive finance.

Kim said the international cooperation would be a big help in supporting companies from South Korea and Luxembourg in entering global markets and creating growth engines. He said the bank would continue to create sustainable growth and innovation beyond borders to support small and medium-sized companies.