Oh Sehee of the Democratic Party
Hosts Roundtable on Building a Financial Ecosystem for Small Businesses
As the application for the fourth internet-only bank license approaches, the consortia preparing for it have pledged to take the lead in supporting small business financing.
On the 21st, Oh Se-hee, Chairperson of the Democratic Party of Korea’s National Small Business Committee, held an expert roundtable titled “How Should a Small Business Specialized Bank Proceed? Building a Financial Ecosystem for Small Businesses” at the National Assembly Members’ Office Building in Yeouido, Seoul.
At the roundtable, voices called for the need for financial support for small business owners. The consortia preparing the fourth internet-only bank also responded to this, adding explanations about the projects they are undertaking. Kim Dong-ho, CEO of Korea Credit Data (KCD, Korea Soho Bank Consortium), and Ok Hyung-seok, CEO of Techfin Ratings (Duzon Bank Consortium), participated in the discussion. Lee Sang-rae, director of Soso Bank, spoke during the Q&A session.
CEO Kim explained that existing banks cannot properly evaluate the credit of small business owners and that they can utilize non-financial data built through Cash Note and its subsidiary Korea Credit Service (KCS). Kim said, “If the public sector plays a safety net role for small business owners, the private sector will act as a catalyst to comprehensively and swiftly utilize various information about small business owners.”
On the 21st, participants are taking a commemorative photo at the "How Should a Specialized Bank for Small Business Owners Proceed? Expert Roundtable for Building a Financial Ecosystem for Small Business Owners" held at the National Assembly Members' Office Building in Yeouido, Seoul. Photo by Oh Gyumin
CEO Ok stated that Techfin Ratings directly conducts credit evaluations for small business owners, saying, “Among those who cannot get loans, we track data such as sales growth, location, and business viability on a monthly or quarterly basis to provide alternative evaluations.” He added, “If it is a bank for small business owners, short-term financial products of three or six months, like in Japan, should be offered so that excellent small business owners can benefit.” Techfin Ratings is a company jointly established by Shinhan Bank and Duzon Bizon, promoting credit evaluation and accounts receivable business for small and medium enterprises.
Director Lee emphasized the need for creating products and conducting credit evaluations tailored to the professions of small business owners, stating, “While platforms are important, since 48% of small business owners are aged 50 or older, offline measures and collaboration with the Small Business Federation are necessary.”
Regarding Naver Pay, the introduction of MyData for individual business owners was urged. Jo Jae-bak, Vice President of Naver Pay, said, “The law on data is very important. MyData is being well implemented by the Financial Services Commission and is spreading well, but if it is introduced soon for individual business owners as well, small business owners will be able to receive more benefits.”
Financial authorities argued that the passage of a legal amendment allowing companies to provide non-financial data is necessary to support small business financing. Shin Sang-rok, Director of the Financial Data Policy Division at the Financial Services Commission, said, “The 50% investment limit stipulated by law in the non-financial credit bureau business makes operations difficult. It is necessary to pass a legal amendment to remove the investment ratio limit on corporate credit rating providers and to expand data sharing between companies to advance credit evaluation models.”
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