Daejeon City and Korea Credit Data Sign Agreement to Establish Internet Bank for Small Businesses

Promise to Establish Headquarters and Core Financial Infrastructure of "Korea SOHO Bank" in Daejeon

Lee Jangwoo, mayor of Daejeon (right), signed an agreement on the 25th with Korea Credit Data to establish an internet-only bank specialized for small business owners. / Daejeon City

Daejeon City announced on the 25th that it had signed a business agreement with Korea Credit Data (KCD) at City Hall to establish the fourth internet-only bank.

Both organizations share an understanding of the importance of innovation in the financial industry and regional inclusion, and agreed to establish the headquarters and core financial infrastructure of the fourth internet-only bank, "Korea SOHO Bank," in Daejeon.

To this end, Daejeon City plans to support the establishment of a regional financial foundation by promoting the approval process for "Korea SOHO Bank," discovering region-specific projects, and linking policy funds.

Korea Credit Data has decided to provide differentiated and innovative financial services to SMEs, small business owners, and local residents in the Daejeon-Chungcheong region through the establishment of "Korea SOHO Bank."

Korea Credit Data, which provides the business management service "Cash Note" to 1.7 million small business establishments nationwide, is leading the establishment of "Korea SOHO Bank," the first internet-only bank in Korea dedicated to small business owners.

Kim Dongho, CEO of Korea Credit Data, said, "We are promoting the establishment of Korea SOHO Bank to provide a credit evaluation system and customized financial services that reflect the business capabilities of small business owners and self-employed people in Korea," and added, "Based on our cooperation with Daejeon City, we will lead regional financial innovation and make this the first bank to provide optimal financial services to small business owners in Korea."

Mayor Lee Jangwoo stated, "A regional financial foundation is essential for the start-up and stable management of SMEs and small business owners in Daejeon," and added, "We will actively promote the establishment of an internet-only bank headquartered in Daejeon to create a regional financial ecosystem that expands throughout the Chungcheong region with Daejeon at its center."

Meanwhile, the application period for preliminary approval for the fourth internet-only bank by the Financial Services Commission is from March 25 to 26, and the results are expected to be announced in the first half of this year.