KakaoBank Surpasses KRW 4 Trillion in Loans to Individual Business Owners... Refinancing Product to Launch in November

[Financial News] KakaoBank's outstanding loans to individual business owners surpassed KRW 4 trillion three years and 11 months after launch. This reflects the bank's efforts to lead inclusive finance by offering small business owners competitive interest rates and a range of loan options. KakaoBank, which has expanded its product lineup to include credit loans, guarantee-backed loans, and real-estate-secured loans, plans to launch a refinancing product in November to help ease small business owners' interest burdens.
On the 2nd, KakaoBank said its outstanding loans to individual business owners had surpassed KRW 4 trillion as of the end of last month.
KakaoBank's loans to individual business owners are designed to allow busy business owners to apply easily and quickly without submitting complicated documents. Previously, applicants had to visit financial institutions to obtain guarantee certificates and apply for loans. At KakaoBank, data-scraping technology enables the entire process, from document submission through post-loan review, to be handled remotely, making it more convenient.
KakaoBank's loans to individual business owners are considered strong for their broad product lineup and competitive interest rates. The bank has continued to expand its offerings, including credit loans, guarantee-backed loans, and real-estate-secured loans, giving customers more choices. In particular, as the first internet-only bank to sign agreements with all 17 metropolitan and provincial Credit Guarantee Foundations nationwide, KakaoBank has significantly improved small business owners' access to financial services by offering various guarantee-backed loans, including special-contribution products and interest-support products.
According to disclosures by the Korea Federation of Banks (KFB), the average interest rates on newly originated loans to individual business owners at the end of August were 5.66% for credit loans, 3.91% for guarantee-backed loans, and 3.48% for real-estate-secured loans. In addition, two out of every three customers with individual business loans have mid- to low-level credit.
KakaoBank plans to introduce a refinancing product in November that will allow customers currently using individual business loans from other banks to switch to lower interest rates, helping small business owners struggling with high borrowing costs. Next year, starting with the launch of a joint loan with Busan Bank, the bank plans to make a full-fledged entry into corporate lending, improve regional businesses' access to funds, and strengthen productive finance.
KakaoBank said, "The outstanding balance of our loans to individual business owners has surpassed KRW 4 trillion as we actively joined efforts to provide financial support for small business customers struggling amid the economic slowdown." It added, "We will continue to take the lead in inclusive finance so that more small business owners can enjoy tangible benefits."
[email protected] Lee Hyun-jung Reporter