South Korea’s Financial Services Commission has newly designated Naver Financial’s non-financial data-based credit loan underwriting service as a designated agent. The move is aimed at expanding loan access for mid-to-low credit borrowers and small business owners who have had difficulty sufficiently proving their creditworthiness through conventional financial information alone.
The FSC announced on the 26th that it convened the 10th designated agent review committee and approved Naver Financial’s “non-financial data-based credit loan underwriting service for financially underserved populations.” With this approval, the total number of designated agent cases has increased to 38.
The designated agent system allows fintech companies and other entities to be entrusted with certain financial operations by financial institutions for pilot implementation. Under this designation, Naver Financial will take on a portion of financial institutions’ loan underwriting duties and provide alternative credit assessments that combine non-financial data with financial data.
Assessment criteria will vary depending on user type. For individual business owners, metrics such as Smart Store visitor counts and sales amounts will be used in loan reviews, while for individuals, payment records and content creation activity will be factored in.
The loan execution structure does not involve Naver Financial directly deciding whether to approve loans. Instead, the alternative credit assessment results produced by Naver Financial are handed over to K Bank and Welcome Savings Bank, which conduct final reviews of loan approvals and limits before disbursing funds.
The FSC expects that once this service is implemented, funding opportunities will expand for mid-to-low credit borrowers—those in the bottom 50% of credit scores—and small business owners. The commission explained that financially underserved populations who previously faced loan rejections or were forced into high-interest loans due to the difficulty of proving repayment capacity under conventional financial information-centric credit assessments could see their financial cost burdens reduced.
In terms of user convenience, loans can be applied for through online and mobile app channels, which is expected to further improve accessibility. The FSC views this as a catalyst for the broader expansion of inclusive financial services.
Add to Google Preferred Sources
Once added, BigGo Finance appears first in Google Search Top Stories, so you get the broadest, most up-to-the-minute, and most comprehensive global financial news first.