The Industrial Bank of Korea is nearing the final steps to open a subsidiary in Poland next year.

The state-run lender said Thursday that the Polish Financial Supervision Authority, or KNF, had authorized its application to set up a corporate entity, making it the first Korean bank to mark such a milestone.

IBK in May 2023 opened its first office in Wroclaw, in a venture to establish Poland as the bank's foothold for European expansion. In March, it filed its application for the local subsidiary.

As Europe’s fifth-largest manufacturing hub, Poland has emerged as a key center for production, particularly in the semiconductor and heavy industries. Trade exchanges with Korea have also grown, with Poland ranking fifth among Korea’s major export destinations.

The growing presence of Korean companies in Poland and nearby regions has spurred Korean banks to expand their operations to meet rising financial demands. Following IBK’s lead, Woori Bank plans to upgrade its Katowice office to a branch. Hana Bank and the state-run Export-Import Bank of Korea are preparing to open a branch and an office, respectively, while KB Kookmin Bank partnered with Poland's Bank Pekao in March to launch a dedicated "Korea Desk."

“Although establishing a corporation and obtaining approval typically takes one to one and a half years, we were able to secure approval in a significantly shorter period by mobilizing internal resources through a dedicated task force and receiving strong support from the Financial Services Commission and other government agencies,” an IBK official noted.

With business operations approval as the next step in the progress, the bank aims to open its Polish subsidiary next year. The subsidiary is set to serve as a strategic base, facilitating the establishment of additional branches in key European manufacturing hubs, such as the Czech Republic, Hungary and Slovakia, while supporting small and medium-sized Korean enterprises expanding into the European market.