[Market Insight] "Credit Rating Market Concentration... Need for a 'Catfish Role'"

Interview with Ko Inmuk, New President of SCI Pyeongga Information
"Subsidiary SCR Strives to Obtain Integrated License Approval"

"We aim to establish ourselves as the '4th Credit Rating Agency' in a complete form capable of performing long-term credit rating (corporate bond evaluation) tasks."

Ko Inmuk, the newly appointed president of SCI Evaluation Information, is posing for a photo at the SCI Evaluation Information headquarters in Yeouido, Seoul. Photo by Kim Daehyun

Recently, at the SCI Pyeongga Information office in Yeouido, Seoul, newly appointed President Ko In-mook said, "During my term, I will make every effort to prioritize obtaining the corporate bond license for our subsidiary SCR Seoul Credit Rating." SCR Seoul Credit Rating currently holds a 'partial license' that only allows evaluation of short-term bonds under one year. Obtaining an integrated license for credit rating business has long been a cherished goal of SCI Pyeongga Information.

President Ko stated, "SCI Pyeongga Information is the only comprehensive credit information company in Korea that holds all the various licenses stipulated under the Credit Information Act in one company," adding, "We have accumulated about 30 years of know-how and high-quality data on credit rating. We will leverage our unique strengths to enhance external competitiveness and devise ways to maximize our sales capabilities."

"Credit rating market oligopoly... Confident in playing the 'catfish role'"

President Ko is a veteran with experience and expertise across finance and accounting fields. He graduated from Seoul National University with a degree in Political Science in 1985, earned a Master's in Business Administration from Purdue University in 1997, and completed doctoral coursework in Business Administration at Chung-Ang University in 2014. After joining the Financial Supervisory Service (FSS) in 1987, he served as Deputy Director of the Corporate Disclosure Bureau, Director of the Accounting Supervision Division 2, and Head of the Tokyo Office. After retiring from the FSS, he worked at the Korea Financial Consumer Protection Foundation and Deloitte Anjin Accounting Corporation.

He assumed office as the new president of SCI Pyeongga Information on the 5th. This is the first time a former FSS official has been recruited as president of SCI Pyeongga Information. President Ko said, "Although I have experience working in the private sector after leaving the FSS, this is my first time working full-time in a for-profit corporation. Personally, it is an immense honor and a golden opportunity to challenge a new field," expressing his thoughts.

Regarding his core management goals, he said, "Currently, the credit rating market is oligopolized by a few companies," adding, "I will lay the groundwork for SCI Pyeongga Information to grow into a key player that can confidently compete with large competitors in the credit rating market." He also emphasized, "We will seek ways to diversify revenue sources, including actively entering new business areas."

President Ko explained, "Since its establishment, SCR has presented opinions to financial authorities on the necessity and reasons for obtaining a corporate bond evaluation license," adding, "When the Financial Services Commission's Competition Evaluation Committee selected the credit rating business as a target industry in 2020, we conveyed that easing entry barriers in the credit rating business would strengthen competitive conditions and that SCR was well-prepared as the 4th credit rating agency."

He continued, "Looking at cases such as iM Bank (formerly Daegu Bank) converting to a commercial bank and the push for the 4th internet-only bank license, a consensus has been formed that instead of a few companies monopolizing a specific market, increasing market participants to induce competition improves service quality," adding, "Proper evaluation and grading in the credit rating market must be conducted to increase consumer (investor) benefits. SCR can be the catfish that invigorates the market," expressing confidence.

Ko In-mook, the new president of SCI Evaluation Information, is giving an interview to Asia Economy at the SCI Evaluation Information office in Yeouido, Seoul. Photo by Kim Dae-hyun

"Current stock price does not reflect company value... Will continue value-up efforts"

Plans are also underway to maximize management synergy along with obtaining the integrated license. President Ko said, "First and foremost, we need to improve the quality of credit ratings," noting, "Problems in the existing market include the timeliness of credit rating grades, focusing mainly on large corporations, and insufficient reflection of non-financial information. Addressing these issues and securing capabilities are of utmost importance."

Regarding specific methods, he said, "We need to expand our ability to acquire corporate and capital market information," adding, "Improving credit rating models using artificial intelligence (AI) and big data technology is necessary, and we will enhance capabilities through strategic alliances or management participation with related companies." He also stated, "To raise SCR's credibility and status in the capital market, we will simultaneously promote financial institutions' equity participation."

Efforts to increase the value of SCI Pyeongga Information's stock price will also continue. President Ko said, "The stock price should not remain at the current level (2,185 KRW as of the closing price on the 11th). It is regrettable that the company's value is not reflected due to the overall undervaluation trend in the domestic stock market," expressing expectations, "Although we are perceived as a latecomer in the credit information industry, there are many untapped areas and high potential for performance improvement and rebound."

President Ko said, "SCI Pyeongga Information is a company that exclusively holds personal and corporate credit information (CB) licenses, which can be considered the core of the credit information business. We possess intangible assets with very high scarcity," adding, "Credit information is expanding from focusing on financial institutions' loan delinquency information to various forms of combined non-financial information. We are striving to secure a competitive base by developing alternative credit rating models that satisfy the 20s and 30s generations."

Furthermore, he said, "As part of our shareholder-first policy and responsible management, we are promoting treasury stock acquisition and consistent dividend policies, and are also considering ways to increase shares held by management and major shareholders," adding, "If necessary, we are also considering a company name change. This aims to enhance trust and a friendly image toward investors and business partners by gathering opinions inside and outside the company. If these efforts are recognized in the market, the stock price will naturally rise and the corporate value will be acknowledged," he concluded.

This content was produced with the assistance of AI translation services.