In a bid to expand its operations in Myanmar, the leading Industrial Bank of Korea (IBK) said it had signed a Memorandum of Understanding (MoU) with Myanmar MSME Development Working Committee on Monday at Lotte Hotel Busan.
The signing of the MoU will pave the way for IBK and MSME to support small and medium-sized enterprises in both countries and develop joint policy finance projects.
As per the agreement, the two sides will enhance personal and policy exchanges to nurture SMEs. The agreement will assist Korean and Myanmar companies in discovering business opportunities in each other countries.
It will help the Industrial Bank of Korea and Myanmar’s SME policy headquarters to expand business in the Southeast Asian region, according to the officials.
The Industrial Bank of Korea is expected to share key knowhow and crucial experiences to assist the individuals in Myanmar. The state-run lender will help in developing specific skills in SME financing, along with some other vital financial knowledge.
An IBK official said that both the economies of Myanmar and Vietnam had displayed massive growth potential in ASEAN. There will be fast economic growth and facilitation of the government’s new southern policy with Korea’s cooperation.
This has emerged as IBK’s fresh initiative to boost cooperation with Myanmar soon after an MOU was signed earlier this year in September jointly by the bank, Korea Land & Housing Corp. (LH), and Korea Trade-Investment Promotion Agency (KOTRA) to assist Korean SMEs to make their debut in Southeast Asian country.
Korea Development Bank and KB Kookmin Bank are also planning to expand its business operations in Myanmar along with IBK.
Myanmar registered an annual growth rate of 7%, which has turned it into a happening investment destination. Earlier, Myanmar’s government also introduced deregulation efforts to attract foreign investment.