K Bank and Busan Bank to Launch Joint Loans in the Second Half of the Year

Collaboration on Corporate Loan Products for Small Business Customers

▲ On the 22nd, Choi Woo-hyung, CEO of K Bank (left), and Bang Seong-bin, CEO of Busan Bank, are taking a photo after signing a business agreement at the Busan Bank headquarters. Photo by K Bank

K Bank is set to launch joint loans as early as the second half of this year in partnership with Busan Bank.

On the 23rd, K Bank announced that it signed a "strategic marketing partnership" agreement at Busan Bank's headquarters, attended by Choi Woo-hyung, CEO of K Bank, and Bang Seong-bin, CEO of Busan Bank.

The plan is to create a "win-win" synergy by combining K Bank's mobile financial platform development and operation capabilities with Busan Bank's financial industry expertise and strong infrastructure network as the largest regional bank. Through this agreement, they aim to develop various mutually beneficial innovative financial business models, including joint loan products that enhance customer benefits.

First, the two banks will jointly develop loan products that share the loan funding and provide customers with reasonable and competitive financial products within the second half of this year.

Since its launch in 2017, K Bank has built IT capabilities by providing non-face-to-face financial services and has its own credit scoring system (CSS) utilizing 13 million customers and both financial and non-financial data. Its strengths lie in excellent customer accessibility and a sophisticated screening system using diverse big data.

Busan Bank, the largest regional bank, has a deep understanding of the financial industry accumulated over 60 years and a strong infrastructure network with about 200 branches. Its total assets reach approximately 90 trillion KRW, providing stable funding as another strength.

The joint loan products combining the strengths of both banks will be developed using each bank's CSS model for joint screening and execution to offer to customers.

It is expected that more customers will be able to receive financial benefits through various channels both online and offline.

To expand regional mutual growth finance, the banks will also collaborate on corporate loan products for small business owners and self-employed customers.

Additionally, the two banks plan to actively promote partnership projects and joint marketing to revitalize products and services. They aim to create new business models linking online and offline services with financial products and execute strategic partnership marketing to provide customers with various benefits.

Choi Woo-hyung, CEO of K Bank, said, "The two banks, each with distinct strengths in their respective areas, will work closely together to enhance consumer protection and benefits and contribute to revitalizing the regional economy. We will strive to create innovative financial services and become a successful win-win collaboration case."

Bang Seong-bin, CEO of Busan Bank, stated, "Based on the strategic cooperation between an internet-only bank and a regional bank, we plan to continuously pursue new business model development and joint marketing. We will continue to focus solely on customers and strive to be a bank that provides real benefits."

Meanwhile, along with signing the agreement with Busan Bank, CEO Choi Woo-hyung visited regional financial institutions such as the Busan-Gyeongnam Credit Guarantee Foundation, Korea Housing Finance Corporation, and Gyeongnam Bank, with which previous agreements had been made, to discuss ways to strengthen further cooperation. K Bank has been leading mutual growth finance efforts by partnering with credit guarantee foundations in Seoul, Busan, Daegu, and Gyeongnam last year to launch guaranteed loans for small and medium-sized enterprises and small business owners.