Established in 1967 as a government-owned bank specializing in foreign exchange, Korea Exchange Bank (KEB) came to hold an unrivalled position in trade financing and global finance as a result of Korea's export drive of the 1970s and 1980s. With the bank's privatization in 1989, KEB solidified its standing as one of the country's premiere commercial banks with a competitive presence in the private and corporate banking fields. Strong revenue generation and the self-help efforts of the entire staff enabled KEB to overcome difficulties arising from the Asian financial crisis of 1997. In late October 2003, the Bank succeeded in attracting 1.075 trillion won in new capital investment from Lone Star, thereby expanding its equity capital and creating the platform to drive ahead. Also in 2003, the Bank increased its non-performing loan (NPL) coverage ratio to 91%, finally allowing KEB to dispose of accumulated large-scale NPLs extended to major corporations in the past. The Bank's asset management structure and approach emphasize quality over quantity, with the focus of lending operations being small &medium-sized enterprises(SMEs) and households with superior credit ratings and/or good growth potential. While KEB continues to maintain an unchallenged lead in the high fee income-generating area of foreign exchange, it is also actively expanding its revenue sources to include new products such as bancassurance, investment trust and others. In addition, systems designed to strengthen marketing capabilities of branches have almost been completed and are already in place at several branches, and new fee-income streams are expected following the recent merger with KEB Credit Service, previously a subsidiary of the Bank. KEB begins fiscal year 2004 with a vastly expanded capital base, an improved balance sheet and a stronger revenue structure than ever before, while its 322 domestic branches and 30 overseas branches and subsidiaries constitute the most extensive global network of any Korean bank. Combined, these factors create a dynamic springboard for KEB's transformation beginning this year into a truly "Global Bank" and its emergence as one of Northeast Asia's leading financial institutions.