Small Business Credit-Based (SCB) Evaluation Expanded to 16 Banks by Year-End

Benefits for High Growth Ratings: Easier Loan Approval, Increased Limits, and Lower Interest Rates
8 Banks Began Pilots at the End of August, Expanding to 16 by Year-End
KRW 2.2 Trillion in Small Business Loans Targeted through the Pilot Program

"Recently, the costs of food ingredients and other raw materials have risen significantly, making it difficult to secure the necessary funds with only the existing loan limits. Thanks to the Small Business Credit-Based (SCB) specialized credit evaluation system, I was able to receive an increased loan limit, which has provided much relief."

At the "SCB Pilot Operation Site Meeting" hosted by Chairman Lee Eogwon of the Financial Services Commission on September 2, Mr. Bae, one of the participants, shared his experience with the SCB, stating, "With the introduction of the SCB, I am now able to obtain bank loans at relatively lower interest rates."

Another attendee, Mr. Chae, also praised the newly introduced SCB system, explaining that he was able to secure enough additional financing through the SCB evaluation to fully fund the purchase of new machinery and equipment.

Earlier, the Financial Services Commission held the third Credit Evaluation System Reform Task Force (TF) meeting in April, announcing plans to introduce the SCB by utilizing non-financial data—such as sales, business type, and commercial district—to assess future growth potential in a more detailed manner. Since then, the financial authorities have developed the SCB operational model and, last month, established related regulations and guidelines.

A total of 16 banks are participating in the SCB pilot operation. Among them, eight banks—KB Kookmin Bank, IBK Industrial Bank of Korea, NH Nonghyup Bank, BNK Busan Bank, Shinhan Bank, Woori Bank, Jeju Bank, and Hana Bank—began pilot operations on August 31. The remaining eight banks—BNK Kyongnam Bank, Kwangju Bank, Sh Suhyup Bank, iM Bank, Jeonbuk Bank, Kakao Bank, K Bank, and Toss Bank—are scheduled to participate step-by-step by the end of the year.

The financial authorities aim to provide KRW 2.2 trillion in loans to small business owners through this pilot operation. The number of participating banks has been expanded from seven to sixteen. Among them, eight banks began the pilot operation on August 31. Banks plan to offer benefits such as upgraded credit ratings, increased loan limits, and lower interest rates to small business owners with high growth ratings.

On this day, Chairman Lee visited the Industrial Bank of Korea to review the SCB pilot operation in the banking sector and listen to on-site feedback. He commented, "The adoption of the Small Business Credit-Based (SCB) specialized credit evaluation system, which assesses growth potential based on non-financial data such as sales, business type, commercial district, and business characteristics that are difficult to reflect in traditional credit assessment models focused on financial transaction histories, is a good example of promoting inclusive finance."

He further emphasized, "With the introduction of the SCB, small business owners who have been growing steadily in their local communities will have much greater opportunities and possibilities, receiving preferential treatment in loan reviews, limits, and interest rates."

The Financial Services Commission plans to operate the SCB for small business owners on a pilot basis for about one year until the second half of next year, after which, based on the analysis of operational results, the system will be enhanced so that all banks can apply the SCB to a wider range of small business loan products. In addition, the SCB will be incorporated into the new "Saidol Loan" for sole proprietors to be launched in October and into the guarantee evaluation process of regional credit guarantee foundations.

Furthermore, the Credit Infrastructure Committee and the Credit Evaluation System Reform Task Force within the Inclusive Finance Strategy Task Force plan to study a variety of international cases, while gathering feedback from related organizations, consumer groups, and field experts.

This content was produced with the assistance of AI translation services.