New Release: Launch of Automated Credit Evaluation System for Accounts Receivable Insurance

Building a Big Data-Based Evaluation System... Automation of Credit Rating Calculation

On the 19th, the Korea Credit Guarantee Fund (KODIT) announced that it introduced the Accounts Receivable Insurance Automatic Credit Evaluation System (ACIS) utilizing big data on the 18th.

Accounts receivable insurance is a public insurance entrusted by the Ministry of SMEs and Startups to KODIT to prevent small and medium-sized enterprises (SMEs) from going bankrupt in succession due to uncollected accounts receivable. Last year, KODIT underwrote a total of 21.5 trillion KRW in insurance, serving as a safety net for SME transactions.

KODIT automated tasks previously performed by employees, such as data collection, credit investigation, and credit evaluation for companies eligible for accounts receivable insurance, by introducing ACIS. Through this, the time required from insurance consultation to subscription has been significantly shortened, enabling customers to receive the desired insurance services at the time they need them.

ACIS automatically collects dynamic information daily, such as credit provision data from financial institutions and value-added tax filing data of 4 million companies, to calculate credit ratings. Since evaluations are conducted on a daily basis, signs of insolvency can be predicted more precisely, allowing for timely risk management.

A KODIT official stated, “The insurance subscription process has been greatly simplified through the automatic evaluation system utilizing big data,” and added, “More prompt and convenient services can be provided to SMEs wishing to subscribe to insurance as soon as possible for safe transactions.”