To pursue the realization of the KDB s long-term vision of a leading bank in Asia, it has resolutely transformed its existing information system, introducing a completely new system in 2001, establishing knowledge based a management system in 2003, and succeeding in building an integrated information system in 2005. In June 1999, the KDB (Korea Development Bank) decided to remove the mainframe environment that is universally used in the domestic banking circles, and it has resolutely adopted an opentype UNIX system as a new information technology system. This new information system has been established in association with Samsung SDS, and surprisingly, the operation of this new system has been outsourced. In fact, the mainframe environment is convenient for handling a large volume of transactions at the window. However, because of the characteristics of its transactions, the KDB has not only different functions related to investment banking, but also complex and huge volumes of transactions and data to handle. Accordingly, the mainframe environment was considered to be difficult for the establishment of an EUC (End User Computing) system and effective analysis of immense data. In order to solve these problems, a significant and resolute decision had to be made. At that time the establishment of a new information system, it had been considered to be one of the critical success factors to the realization of the KDB's management strategy. So, the bank put emphasis on building its infrastructure and providing customized services in order to be a leading bank in the borderless competitive world of the 21st century. To this end, it focused on two systems: one is a core banking system, and the other is a data warehouse system enabling the provision of diverse information. This kind of a huge scale project usually takes at least more than three years to build, but nevertheless it successfully finished the project in 20 months. For smooth implementation of the project, the KDB has adopted a CIO (Chief Information Officer) system, which has managed and supervised the whole process of the project. During this period, all the personnel participating in this project had to spend holidays in the office, coming to the office early in the morning and working late into the night. One more important thing worth pointing out is that all the frontline departments gave full support to the project team. All these factors came together to get this project successfully accomplished. The new information system is composed of two systems, i.e., a core banking system and data warehouse system. The core banking system handles credit, deposit, dealing, fund management, borrowing, financial accounting, etc., and the data warehouse system provides comprehensive report materials for all sectors as well as analysis reports on profits and expenses. The new information system has entered into operation on a full-scale basis on March 5, 2001. The results of this new system are as follows. First of all, in regard to job performance, a customer DB (Data Base) system has been established, smooth connection between each unit job has been made possible, thus making job handling much easier, a daily settlement system and timely support for the development of new financial products have been given. Secondly, in regard to development, segmentation of programs into parts and the introduction of automatic tools have made a great contribution to the enhancement of productivity. Thirdly, it has laid the foundation for a "no-crash" system and adopted various monitoring systems. And finally, in regard to information technology, an integrated terminal, a cyber banking support system, and a global network system have been established. More importantly, the KDB has made every effort to provide a raft of Internet banking services to effectively cope with digital financial environment, to introduce a specialized e-biz strategy, and to develop new business models so that it may strengthen external competitiveness. The groupware system, which enables all KDB staff members at home and abroad to share information on a real-time basis, has enhanced not only job productivity but also laid the foundation for knowledge- based management. Meanwhile, in an effort to secure the expert personnel for the establishment of the new information system, it has surprisingly resolved to fully outsource the system operation. This was the first such case in the domestic financial industry. To tell the truth, there had been a lot of concern that outsourcing could cause frequent trouble, computer accidents, and leakage of classified information. However, the establishment of an internal control system and reinforcement of the auditing system and security function have made it possible to remove all kinds of worries and suspicions. Now, a responsible management system through joint operation has been established, and a mature partnership between the bank and the outsourced company has been formed, consequently making the case a benchmark for all other organizations. In 2002, the Ministry of Information and Communication, in association with the FKI (the Federation of Korean Industries), held the "First Digital Knowledge Based Management Award" to encourage and evaluate the information- intensive level of all related companies in Korea. In the ceremony, the KDB won the "excellence in the financial sector" prize. This prize has boosted the image of the KDB as an IT-capable bank as well as inspiring confidence in it. Internally, it has also boosted the morale and pride of all the KDB staff members. In addition, for the first time in the banking sector, the new system means the Bank has a distance disaster recovery system on a real-time basis, so that it may immediately bring the back-up system into action in the case of an emergency without loss of data. The IT history of the KDB started in 1970 with two EDPS (Electronic Data Processing System) staff members. In 1979, it introduced its own computer system, FACOM; it introduced an online system for deposits in 1984 and for credit in 1986; and adopted an IBM mainframe solution in 1991. And at last it introduced a new information system. To push ahead with the realization of its long-term vision of becoming "the leading Asian bank," the KDB information system sector continues to drive innovation towards newer and more advanced information systems.

Annual Implementation Goals 2005: Establishment of Integrated Information Management System - Pursue the integration of IT management system 2004: Expansion of Knowledge Based Management Infrastructure - Won grand prize at the Korea Software Technology Grand Prize. -Reestablished a groupware system. 2003: Establishment of Knowledge Based Management Infrastructure -Set up a management administration system. 2002: Establishment of e-Biz Foundation -Won Digital Knowledge Excellence prize - Management Grand Prize. -Set up Internet banking. 2001: Establishment of Core Banking System -Set up a new information system.