K Bank's Q4 Loan Proportion to Low- and Medium-Credit Borrowers at 29.1% Last Year

Supply of 1.32 trillion KRW over one year

K Bank announced that the proportion of loans to low- and medium-credit borrowers in the fourth quarter of last year was 29.1%. This is a 4 percentage point increase compared to the end of 2022 (25.1%). It also rose by 2.6 percentage points compared to 26.5% in the third quarter of last year.

The total loan amount supplied over the year was 1.32 trillion KRW. Since its launch in April 2017, the total amount of credit loans supplied to low- and medium-credit borrowers until last year reached 5.4 trillion KRW.

K Bank explained that it expanded inclusive finance with low- and medium-credit customers by strengthening interest rate benefits, including lowering interest rates on loan products for low- and medium-credit borrowers three times last year. For example, in August and September last year, the interest rates on loan products for low- and medium-credit borrowers were each lowered by up to 1.0 percentage point annually, followed by a further reduction of up to 3.3 percentage points annually in November. As a result, some low- and medium-credit customers took out loans at a minimum annual interest rate of 3.98% last year, indicating that loans were supplied at low interest rates.

This year, K Bank stated that it plans to continue supplying loans to low- and medium-credit borrowers and practice inclusive finance. Over the next three years, it aims to expand the loan balance for low- and medium-credit borrowers to 2.77 trillion KRW and strengthen interest rate competitiveness to provide interest rate benefits.

A K Bank official said, “We will continue to expand loans to low- and medium-credit borrowers and enhance benefits through the advancement of CSS using various alternative information.”