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Small business loan program to use AI to rate growth potential

Published: 09 Apr. 2026, 17:22 Updated: 09 Apr. 2026, 17:39

The Financial Services Commission plaque is seen at the government complex in Jongno District, central Seoul on Sept. 7, 2025. [YONHAP]

An AI-powered credit rating system will be introduced this year to extend more loans and financing to small business owners with high growth potential but little collateral, the country's financial regulator said Thursday.

According to the Financial Services Commission, some 700,000 small business owners are expected to benefit from the so-called small business and self-ownership credit bureau (SCB), with an additional 10.5 trillion won ($7.1 billion) in new loans to be available annually for them.

The SCB is designed to focus on assessing smaller business owners' growth potential rather than collateral for loan extension.

Initially, seven banks, including KB Kookmin Bank and Shinhan Bank, will apply the newly introduced rating system for their loan products worth 1.8 trillion won this year, the regulator said.

Yonhap