Korea Inclusive Finance Agency Reports 55% Credit Score Increase Among Financially Vulnerable Groups Through Credit and Debt Consulting

Changes in the Number of Loan Products by Industry Before and After Credit and Debt Management Consulting. Photo by Seomin Financial Support Center

[Asia Economy Reporter Song Seung-seop] An analysis revealed that more than half of the credit scores improved through credit and debt consulting under the policy for low-income financial support.

According to the Korea Inclusive Finance Agency on the 13th, a pilot project providing credit and debt management consulting for policy low-income financial support recipients resulted in an average credit score increase of 54 points for 55% of the participants. There was even a case where the score rose up to 458 points over six months starting from September last year.

Credit and debt management consulting is a service that provides customized solutions for those who have difficulty managing their credit. Professional counselors with relevant certifications or more than 15 years of experience in the financial sector analyze and inform clients monthly about their credit and debt status. After the pilot project, it is currently being expanded as a regular program.

The number of people eligible for loans from regulated financial institutions (credit score 693 points) increased by 58.9%, from 358 to 569, through the consulting, and 235 people became able to use commercial banks. Additionally, 99 people with somewhat lower average scores received preferential products launched through collaboration between the Korea Inclusive Finance Agency and commercial banks.

Lee Gye-moon, president of the Korea Inclusive Finance Agency, emphasized, “We will expand support so that more people can use credit and debt management consulting,” and added, “We will continue to expand cooperation with banks to support the use of first-tier financial institutions.”