The South Korea Financial Services Commission announced plans to introduce an artificial intelligence-based credit rating framework for small businesses and self-employed business owners, centered on a new Small Business & Self-Ownership Credit Bureau (SCB) model and a supporting data infrastructure. The initiative is intended to incorporate nonfinancial information and forward-looking growth potential into credit assessments to improve loan access and pricing for smaller firms. Under the SCB approach, ratings will range from S1 to S10 and combine existing credit bureau ratings with a “future scale-up” component built from an AI-based quantitative model and a qualitative evaluation of individual business strengths. The framework draws on nonfinancial data such as sales performance and business category and location, with higher future scale-up scores designed to lift overall scores and support eligibility for loans and related benefits. In parallel, a Small Business & Self-Ownership Database will be established at Korea Credit Information Services to store financial and nonfinancial data for use in credit rating and statistical analysis, and to support tailored product development and financial consulting; from the second half of 2026, Korea Credit Information Services plans to provide explanations of key factors behind SCB ratings to credit bureaus and financial companies. Pilot use of SCB ratings with participating banks is planned for the second half of 2026, expected to begin in August, with rules changes and system upgrades targeted for the third quarter of 2026 to support the pilot. After reviewing pilot results in the second half of 2027, credit bureaus and financial companies are expected to begin adopting and refining SCB-based systems with the aim of broader, incentive-based use across financial sectors; the FSC also plans guidelines and incentives such as penalty relief and performance evaluation, and intends to reflect banks’ SCB usage in public disclosures alongside social contribution performance and in inclusive finance performance assessments. The FSC estimates the framework could benefit around 700,000 individuals annually through new lending of about KRW 10.5 trillion and/or lower borrowing costs of about KRW 84.5 billion.
South Korea Financial Services Commission 2026-04-09
South Korea Financial Services Commission plans AI-based SCB credit ratings for small businesses with a pilot from the second half of 2026
South Korea’s Financial Services Commission plans an AI-based Small Business & Self-Ownership Credit Bureau to improve credit ratings and loan access for small businesses and self-employed borrowers, using nonfinancial data and forward-looking “future scale-up” assessments. A dedicated Korea Credit Information Services database will support ratings, product development and consulting, with pilot bank use from late 2026 and broader, incentive-based adoption across financial sectors. The FSC estimates annual benefits for about 700,000 individuals via roughly KRW 10.5 trillion in new lending or KRW 84.5 billion in reduced borrowing costs.