K Bank Promotes Inclusive Finance with Sajangnim Guarantee Loan... 65% of Customers Are Mid- to Low-Credit Borrowers

Analysis of Personal Business Owner Guarantee Loan Executions in the Second Quarter of This Year

K Bank announced on July 29 that, according to its analysis of personal business owner guarantee loan executions in the second quarter of this year, 65% of all customers were found to be mid- to low-credit borrowers. K Bank currently offers two guarantee loan products for personal business owners: "Sajangnim Guarantee Loan" and "Sajangnim Ontact Guarantee Loan."

The "Sajangnim Guarantee Loan" is a secondary compensation loan operated in cooperation between K Bank and regional credit guarantee foundations, targeting personal business owners. It provides support of up to 100 million won within the guarantee limit funded by K Bank’s contributions, and applications can be made either through the app or by visiting the foundation. K Bank has agreements with 10 local governments, including Seoul, Incheon, and Busan, and offers this product in those regions. The "Sajangnim Ontact Guarantee Loan" targets the same customer group, but allows the entire process from guarantee application to loan execution to be completed non-face-to-face through the K Bank app. The limit for this product is 30 million won, and it is available nationwide regardless of region.

According to the bank’s internal analysis, the proportion of mid- to low-credit customers was 63.4% for the "Sajangnim Guarantee Loan" and 68.6% for the "Sajangnim Ontact Guarantee Loan." When looking at all personal business owner guarantee loans (the combined total of both products) by region, Jeju had the highest proportion of mid- to low-credit customers, while Sejong, Jeonbuk, Jeonnam, Ulsan, Chungbuk, and Gyeongbuk also had high proportions in the 70% range. Even in Daejeon and Seoul, which had the lowest proportions, half of the customers were mid- to low-credit borrowers.

K Bank plans to expand cooperation with regional credit guarantee foundations that do not yet offer guarantee loan products, aiming to provide more practical financial benefits to a greater number of small business owners.

A K Bank representative stated, "Considering that small and micro business owners with low regional credit ratings face difficulties accessing loans, our products developed in cooperation with local governments and credit guarantee foundations are providing real assistance. We will continue to expand mutually beneficial financial products so that small business owners can conveniently use financial services without burdens."