'Will Loans for Small Business Owners Become Easier?'... Financial Services Commission to Establish Customized Credit Evaluation System for Small Business Owners

On-site Meeting Held to Improve Credit Evaluation for Small Business Owners Using AI and Data

The financial authorities plan to introduce systems utilizing artificial intelligence (AI) and data technology, such as MyData for sole proprietors (personal credit information management service), a credit evaluation system specialized for small business owners, and token securities, in order to provide tailored funding to small business owners.

The Financial Services Commission announced that on July 24, Vice Chairman Kwon Daeyoung presided over an on-site meeting at KakaoBank in Pangyo, titled "On-site Meeting for Improving Credit Evaluation of Small Business Owners Using AI and Data."

This meeting was the third of its kind, held to listen to voices from the field following the President’s directive after the Chungcheong region town hall meeting on July 4. It was organized to share the policy direction currently under review by the Financial Services Commission in response to the suggestion, raised at the July 17 meeting, that a customized credit evaluation model for small business owners is needed, and to develop demand-driven policies.

At the meeting, Vice Chairman Kwon stated, "For the government’s various policies to support small business owners to succeed, it is crucial to have accurate credit evaluations that can help promising businesses start up and actively support small business owners with growth potential. In particular, since the traditional methods of funding based on the representative’s personal credit, collateral, guarantees, or finances have limitations, we must mobilize all digital technologies, including AI and data, to seek completely new solutions."

The Financial Services Commission plans to establish a system so that, in addition to existing financial information, a variety of information such as reputation built as a business, business track record (unstructured data), and future growth potential analyzed using AI technology can be systematically reflected in the credit evaluation of small business owners and sole proprietors.

To this end, the "My Business Data" (MyData for sole proprietors) system will be introduced. This service will allow sole proprietors to integrate and manage their business-related financial information, transaction data, and public information, which are scattered across various places, and have them reflected in their credit evaluations.

In particular, it is planned to be designed to serve as a one-stop financial assistant throughout all stages, from starting a business, operating, to support after closure and restarting. At the startup stage, it will support successful business launches through commercial district analysis and startup consulting. During the operation stage, it will provide recommendations for policy funds, sales analysis, and product comparisons such as interest rates. If difficulties arise, it will also help facilitate smooth closure and restarting of the business.

In addition, a dedicated "Credit Evaluation System (SCB)" for small business owners will be established. Based on the information concentrated in the Small Business and Self-Employed Integrated Information Center (SDB), the Korea Credit Information Services will develop a standard credit evaluation model (SCB) for small business owners. The Financial Services Commission plans to announce the details of the SCB in the second half of this year.

Furthermore, the meeting discussed diversifying funding channels for small business owners through token securities (STO). The idea is that by utilizing token securities, small business owners can more easily raise funds by promoting their businesses to general investors and distributing business profits under certain conditions.

Vice Chairman Kwon stated, "Since the revision of the three major data laws (the Credit Information Act, the Personal Information Protection Act, and the Act on Promotion of Information and Communications Network Utilization and Information Protection), we have focused on establishing a safe foundation for data utilization. From now on, we must move to the next stage, where we create new value through data and solve real-world problems through data utilization."