Preparing 'Duzon Bank' Utilizing Corporate Data... Duzon Bizon Stock Soars

31% Increase Since April 4 Announcement of Duzon Bank Establishment
Growing Optimism Following Shinhan Bank's Participation Review
Expectations for a Bank Specializing in SMEs and Small Business Owners

The corporate value of Duzon Bizon, an enterprise resource planning (ERP) company challenging to become the fourth internet-only bank in Korea, is increasing. This is due to growing expectations that it can emerge as an internet-only bank specialized for small and medium-sized enterprises (SMEs) and small business owners, given that it possesses corporate data necessary for internet-only banks and AI-based corporate credit evaluation models.

According to the financial investment industry on the 11th, Duzon Bizon's stock price rose about 31% over four days starting from the 4th. During the same period, the KOSPI remained flat.

Earlier, on the 4th, Duzon Bizon announced the establishment of 'Duzon Bank (tentative name),' Korea's first internet-only bank specialized for SMEs and small business owners, introducing innovative finance based on corporate data. On the day of the announcement, the stock price rose 21%. Afterward, selling pressure for profit-taking caused some correction, but the stock price rebounded again on the 9th. News that Shinhan Bank was considering participating in the Duzon Bank consortium stimulated investor sentiment.

Duzon Bizon is planning a Duzon Bank consortium involving commercial banks, policy institutions, and large corporations. Among the four major commercial banks?KB Kookmin, Shinhan, Hana, and Woori?Shinhan Bank is not investing in internet-only banks. Shinhan Bank had previously considered participating in the Kakao Bank and Toss Bank consortiums but decided not to invest, judging that the synergy effect with internet-only banks, which have a high proportion of personal finance sectors, would not be significant.

On the other hand, Duzon Bizon, a software development company specializing in accounting, ERP, groupware, and information security, provides various solutions targeting SMEs. Duzon Bizon can utilize corporate cash flow information and data verification devices centered on ERP and groupware. Through the internet-only bank, it can increase the value of the corporate data it holds.

Based on the corporate data and various corporate solutions secured by Duzon Bizon, Duzon Bank can supply funds to SMEs and small business owners. Existing internet-only banks rely on collateral and guarantees due to the lack of accurate credit rating data. In a situation where smooth fund supply is difficult, Duzon Bank can offer customized financial products to SMEs and small business owners who are in the financial blind spots.

A Duzon Bizon official said, "We plan to focus on expanding financial inclusion for SMEs and small business owners through Duzon Bank," adding, "We will extend innovation in fund supply for SMEs and small business owners throughout the financial industry."

The financial authorities decided in July last year to promote new approvals for internet-only banks. New approvals are granted after strict reviews of soundness and business plans. If Duzon Bank receives approval as the fourth internet-only bank from the financial authorities, rapid corporate value growth can be expected.

A financial investment industry official said, "The stock price is rising just because they are preparing an internet-only bank," adding, "Since approval has not yet been granted, the stock price rise could be considered excessive." However, he added, "Given the large corporate value of existing internet-only banks, expectations are also high. It is necessary to judge investment decisions considering the preparation status and approval procedures."

Not only the expectations for new business but also the outlook for improved performance positively influence the stock price trend. Shinhan Investment Corp. estimated that Duzon Bizon will achieve sales of 412.7 billion KRW and operating profit of 81 billion KRW this year, increases of 16.7% and 17.2%, respectively, compared to last year. Lee Byung-hwa, a researcher at Shinhan Investment Corp., analyzed, "Last year, through improved operating profit margins, we confirmed the effects of cost efficiency and profitability strategies," adding, "This year, by lowering the selling and administrative expense ratio, the operating profit margin is expected to approach the 20% range."