Daegu Bank Changes Name to ‘iM Bank’... Opens First Branch in Wonju, Gangwon

Daegu Bank has received approval to convert into a commercial bank and will change its name to iM Bank. The first flagship branch to expand its network nationwide is planned to be established in Wonju, Gangwon Province.

DGB Daegu Bank's application for conversion to a commercial bank was approved on the 16th. Established in October 1967 as the first regional bank in Korea, DGB Daegu Bank has grown over the past 57 years as a leading company in the Daegu and Gyeongbuk regions. With this conversion to a commercial bank, it has been reborn as a nationwide commercial bank, marking the first case of a regional bank transitioning into a commercial bank.

To create a new impression among customers, the bank's name will be changed to ‘iM Bank.’ The new name will be finalized after a shareholders' meeting. However, in the Daegu and Gyeongbuk regions, the Daegu Bank brand will be used alongside iM Bank.

The vision of DGB Daegu Bank as a commercial bank is to be a ‘New Hybrid Bank that grows together with customers nationwide.’ This vision emphasizes a new type of bank that combines the advantages of internet banks, such as digital accessibility and cost efficiency, with the strengths of regional banks, including expertise in small and medium-sized enterprise (SME) financing.

Hwang Byung-woo, President of DGB Daegu Bank

The bank plans to actively promote relational financial services that reach out to SMEs. By achieving economies of scale and reducing funding costs through the conversion to a commercial bank, it will be able to offer better interest rates and credit limits to customers nationwide. Inclusive finance will also be expanded to help low- and medium-credit borrowers safely settle within the banking sector.

Efforts to enhance a robust internal control system and asset soundness management will continue. This includes establishing an Internal Control Innovation Committee, early adoption of a responsibility structure, appointing an external expert as a compliance officer, and expanding advanced digital inspection techniques such as AI-OCR. Additionally, the bank will fully upgrade its credit evaluation models and introduce a systematized credit screening process to ensure thorough soundness management.

Branch openings are now possible in the Chungcheong, Gangwon, Honam, and Jeju regions. However, rather than rapidly increasing the number of branches, the bank plans to implement an efficient and productive business strategy by leveraging digital finance, nationwide flagship branches, and the corporate branch manager (PRM) system. Flagship branches will be sequentially opened in these four regions.

The first flagship branch to establish a nationwide network after the conversion is expected to be the Wonju branch. Wonju is favorably located as a hub area adjacent to Daegu, Gyeongbuk, and the Seoul metropolitan area, and it was highly evaluated because there is no regional bank located in that area.

To commemorate the conversion to a commercial bank, a ‘Re-Born Festival’ marketing campaign will be conducted targeting customers nationwide to widely promote the newly starting DGB Daegu Bank. This includes special high-interest time deposits, mortgage loans at the lowest interest rates in the banking sector, and loan products for individual business owners using alternative information. A ‘full package of customer service products’ such as reduced interest rates on non-face-to-face personal loans, full exemption of fees related to GLN overseas simple payments, and installment fund events will be carried out in various phases following the announcement of the commercial bank conversion and the timing of the name change announcement.

Bank President Hwang Byung-woo stated, “Based on the financial know-how accumulated over the past 57 years, DGB Daegu Bank, which will become a new commercial bank that grows together with SMEs, small business owners, and vulnerable groups nationwide and promotes co-growth with local communities through various digital innovation services, will bring a fresh breeze to the banking market and do its best to contribute to the development of the financial market with solid soundness and internal controls.”