Annual 來 surges by KRW 2.8 trillion
Expected to continue to increase in the future
사진 확대 Claude
Internet banks (Inbang) and three companies (Kakao, K, and Toss Bank) are moving their central axis of loans to private businesses (Soho) amid household loan regulations.
According to the financial sector on the 7th, as of the end of the first half of this year, the balance of Soho loans of the three Inbang companies totaled 8.32 trillion won, a 50.6% increase in a year compared to the same period last year (5.5266 trillion won). Compared to the end of last year (6.763.1 trillion won), it increased by 1.5622 trillion won in the first half of this year alone.
Compared to other commercial banks, this is a very steep increase. At the end of the first half of the year, the balance of Soho loans by the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank) was 325.49 trillion won, a slight increase of 0.42% in a year.
The financial authorities’ stance on strengthening household loan regulations is behind the expansion of Soho loans by the banking sector. For Inbang, which relies heavily on household loans due to its inability to lend to large companies under the Internet banking law, it was hit hard to secure profitability due to its limited capacity to expand loans. As a result, Soho loans, which were excluded from the management of the total amount of household loans, were used as a new source of revenue.
Usually, Soho loans are highly sensitive to the economy and are feared to be insolvent, but it is evaluated that it has also achieved results in the management of delinquency rates by expanding collateral and guarantee loans and upgrading its own credit rating model (CSS). Despite the rapid increase in Soho loans, the delinquency rate of the three companies was 0.72%, an improvement of 0.05 percentage points from the first half of last year.
As a result, competition to attract private businesses in the banking sector is also intensifying. Kakao Bank is preparing a corporate joint loan product in partnership with BNK Busan Bank. During the second half of the year, K-Bank plans to significantly expand the handling of “President’s real estate mortgage loans” and the use of loans.
The industry predicts that the size of Soho loans in the entire business sector will further grow. First of all, Toss Bank, which announced the launch of mortgage loans this year, is expected to launch mortgage products for individual businesses in the future. Toss Bank is the only one of the three Inbang companies not yet dealing with mortgage loans for private businesses, and as of the end of the first half of this year, the balance of Soho loans was KRW 1.3372 trillion, down 4.9% in a year.
In addition, as the financial authorities decided to introduce a credit rating system (SCB) specialized for small business owners to major banks, it is analyzed that the supply of loans will expand to small business owners who were previously difficult to borrow. The Financial Services Commission began piloting the SCB from the 31st of last month, and the three Inbang companies are also planning to participate in the second half of the year. The Financial Services Commission aims to supply a total of 2.2 trillion won worth of loans through this pilot operation.