K Bank Introduces 'Small-Business-Focused SCB' for Loans to Individual Business Owners

[Financial News] K Bank will introduce a Small Business Credit Bureau (SCB) system for unsecured credit loans to individual business owners.
The Small Business Credit Bureau (SCB) is a credit assessment model that uses nonfinancial information, including sales, business type and commercial district data, in loan evaluations to improve small business owners' access to financing. The Financial Services Commission (FSC) announced plans to introduce the SCB in April, and implementation gained momentum after eight banks began pilot operations on the 31st of last month.
K Bank announced on the 30th that it would apply the SCB to its 'Business Owner Credit Loan' and 'Business Owner Credit Loan Refinance' products, offering preferential loan limits to small business owners.
K Bank plans to provide KRW 150 billion annually in unsecured credit loans to individual business owners evaluated under the SCB. This is the largest such supply among internet-only banks. Small business owners who receive a high 'growth grade' in the SCB assessment may receive a preferential loan limit within the maximum KRW 300 million limit for K Bank's Business Owner Credit Loan.
The SCB will also be applied to the Business Owner Credit Loan Refinance product, which is expected to expand small business owners' opportunities to refinance their loans. Small business owners can conveniently transfer existing credit loans for individual business owners from traditional banks to K Bank through a mobile app. They can also secure additional funds through an increased loan amount. With the SCB in place, small business owners with high growth grades may receive preferential loan limits, giving them greater opportunities to obtain additional funds while refinancing.
K Bank plans to strengthen its role in inclusive finance by embracing more small business owners through the SCB's introduction, as its individual business owner finance business continues to grow rapidly. K Bank's cumulative supply of loans to individual business owners surpassed KRW 5 trillion as of the end of June. In the first half of this year alone, it provided KRW 1.52 trillion, equivalent to approximately 82% of the amount supplied throughout the previous year.
Meanwhile, K Bank plans to launch a credit loan exclusively for individual business owners before the end of the year, using Naver Pay's alternative credit assessment system to expand small business owners' access to loans and financial benefits.

[email protected] Ye Byeong-jeong Reporter