KakaoPay Partners with KCB on Alternative Credit Evaluation Model "KakaoPay Score"

On June 26, KakaoPay announced that it had signed a memorandum of understanding (MOU) with Korea Credit Bureau (KCB), the leading comprehensive credit evaluation company in South Korea, to collaborate on a new alternative credit evaluation model called "KakaoPay Score."

The signing ceremony took place at the KakaoPay office located in Pangyo, Gyeonggi Province. The event was attended by Shin Wongun, CEO of KakaoPay, Hwang Jongseop, CEO of KCB, and other key executives from both companies. Through this agreement, the two companies will launch the new alternative credit evaluation model, "KakaoPay Score." They plan to strengthen their cooperation with the joint goal of realizing "inclusive finance" by providing practical financial opportunities to thin filers?such as young adults at the beginning of their careers, individuals with mid- to low-credit scores, and small business owners?who face difficulties accessing financial services like loans due to insufficient credit history.

Shin Wongun, CEO of KakaoPay (left), and Hwang Jongseop, CEO of KCB, are posing for a commemorative photo at the alternative credit evaluation service business agreement ceremony held at the KakaoPay office located in Pangyo, Gyeonggi. KakaoPay

The KakaoPay Score is a model that comprehensively utilizes KakaoPay's own diverse data, including MyData, payment, remittance, gifting, and consumption patterns, as well as various other non-financial data. By combining the vast data from KakaoPay?the most widely used daily financial platform in South Korea for payments, remittances, loans, investments, and insurance?with KCB's sophisticated credit evaluation expertise and know-how accumulated over more than 20 years, it will be possible to analyze individuals' creditworthiness from multiple perspectives, which was difficult to achieve with traditional credit transaction-based evaluations. As a result, the KakaoPay Score is expected to open up financial opportunities for thin filers such as young adults, students, and individuals with mid- to low-credit scores, who have traditionally struggled to obtain loans and other financial services under conventional credit evaluation standards, thereby promoting inclusive finance.

The KakaoPay Score will not be limited to KakaoPay's loan comparison service but will also expand its application to loan and credit card applications processed through financial institutions' own channels, with the goal of making it available across the entire financial sector. The KakaoPay Score service is scheduled to launch next month.

A KCB representative stated, "Building on this partnership, the combination of KCB's credit evaluation capabilities and experience with KakaoPay's high-quality data and technology will further solidify the data-driven financial ecosystem in the future."

A KakaoPay representative said, "The KakaoPay Score will leverage the strengths of both companies to change the paradigm of credit evaluation and provide users with a healthier and more convenient financial life. We will continue to work together to realize inclusive finance, enabling users with relatively limited credit histories to access financial services in a rational manner."