<p>The national economy of South Korea at the time of the establishment of Industrial Bank of Korea (IBK) was mainly composed of the primary and the tertiary industries with a small input from the secondary industry. Therefore, both the quantitative and the qualitative significance of SMEs in the secondary industry had been immense.</p>
<p>This report examines the establishment and roles of Industrial Bank of Korea, the only government-owned bank specializing in small and medium sized enterprises (SMEs) in Korea. The review consists of four parts, covering the background of IBK, its establishment and growth over a half century, its roles and achievements, and comprehensive insights and implications. Section 1 provides the historical background for the foundation of IBK by describing the economic situations in the 1950s. In the 50s, the aftermath of the Korean War stroke the economy and the government was struggling to restore the economy. In order to promote the all-around economic expansion, it was considered indispensable to support SMEs and resolve their financial difficulties as they comprised a large proportion of the national industry. Section 2 discusses the process of establishment of IBK from the outset to the official promulgation in 1961, examines its development over time, and analyzes its structure. It was first designed in 1957 and, after going through formal procedures, launched its business in 1961.</p>