Naver Financial to pilot alternative credit scoring service

Naver Financial has been designated as a ‘designated agent’ by South Korea’s Financial Services Commission to pilot an alternative credit scoring service. This service utilizes non-financial data to assist in credit loan reviews for small business owners and low-to-medium credit individuals who may struggle to secure financing through traditional financial information alone.

The non-financial data used for these assessments includes metrics such as the number of visitors to a business’s Smart Store, sales amounts, payment history, and content creation records. Based on these alternative evaluations, Kbank and Welcome Savings Bank will review and decide on loan eligibility and limits.

The designation is part of a regulatory framework that allows fintech companies to pilot essential financial services by being commissioned by financial institutions. The Financial Services Commission expects this initiative to expand funding opportunities, improve financial accessibility, and reduce the financial burden for those in the bottom 50% of credit scores.