Kakao and K Bank Achieve Last Year's Loan Targets for Medium and Low Credit Borrowers

Toss Bank Highest at 40% but
Target Not Met

As of the end of December last year, the proportion of credit loans to middle- and low-credit borrowers at KakaoBank and K Bank stood at the 25% range. Toss Bank recorded 40.37%. KakaoBank and K Bank achieved their initial target of 25%, while Toss Bank fell short of its target of 42%.

According to the Bankers Association disclosure on the 28th, KakaoBank's proportion of credit loans to middle- and low-credit borrowers was 25.4%. This figure represents the share of loans to borrowers in the lower 50% credit score bracket (820 points or below) based on KCB standards within the total household credit loans of each internet-only bank. K Bank and Toss Bank recorded 25.1% and 40.37%, respectively.

According to KakaoBank, the amount of unsecured loans supplied to middle- and low-credit customers last year was 2.5975 trillion KRW, an increase of 1.5 times compared to the previous year. K Bank supplied 2.0265 trillion KRW in credit loans to middle- and low-credit borrowers. Toss Bank's outstanding balance of household loans to middle- and low-credit borrowers was approximately 2.9 trillion KRW as of the end of last year.

According to Toss Bank, as of February this year, the proportion of credit loans to middle- and low-credit borrowers surpassed 41.2%.

The targets each company must achieve by the end of this year are 30% for KakaoBank, 32% for K Bank, and 44% for Toss Bank.