The South Korea Financial Services Commission has moved its expanded Small Business Credit Bureau assessment into operation, with eight banks beginning a pilot on Aug. 31. The initiative will ultimately cover 16 banks and target KRW 2.2 trillion of lending, advancing efforts to give growth-oriented small businesses better access to bank credit through alternative data-based assessments. The artificial intelligence-based model evaluates future growth using nonfinancial information such as sales, industry, commercial location and business continuity, supplementing conventional financial and credit histories. A strong growth grade may lead to loan approval, a higher credit grade or limit, or a lower interest rate. Revised regulations and lending guidelines took effect in August, including operating guidance on using the scores and liability protection for compliant handling without intent or gross negligence. Eight more banks are expected to join by year-end. The pilot will run until the second half of 2027, after which the commission plans to assess results and support broader use across bank lending products. The model is also scheduled for individual business owner Saetdol loans from October 2026 and regional credit guarantee assessments during 2027.
2026-09-02South Korea Financial Services Commission
South Korea Financial Services Commission launches small business credit scoring pilot at eight banks, targeting KRW 2.2 trillion across 16 lenders
The South Korea Financial Services Commission has launched its alternative small business credit assessment pilot at eight banks, with coverage set to expand to 16 banks and KRW 2.2 trillion of lending. The model uses nonfinancial data to assess growth potential and may support loan approvals, higher limits and lower rates, with wider use planned in Saetdol loans and regional credit guarantees.