Press Releases - Financial Services Commission

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Mar 31, 2020

FSC Introduces Amendments to Enforcement Decree of Credit Information Act

The government announced on March 30 that the amendments to the three major data privacy laws passed by the National Assembly on January 9 are scheduled to take effect on August 5 this year. As such, the FSC has prepared the amendments to the enforcement decree of the Credit Information Use and Protection Act to be put up for public notice until May 11.KEY AMENDMENTSI. DATA CONVERGENCEData convergence by financial institutions shall be carried out through a designated institution specifically tasked with data convergence by the FSC. Data specializing institutions shall provide pseudonymised or anonymised data to financial institutions.Data specializing institutions shall maintain appropriate human resources and set up a risk management system for secured processing of data convergence by maintaining separate servers for converged data.II. TRANSFER OF PERSONAL DATAPersonal credit data including personal financial transaction information, individual income tax and local tax records, insurance payment records and other financial information that are stored in financial institutions, commercial businesses and public institutions can be transferred to data subjects, financial institutions, personal credit bureaus and MyData businesses upon request from data subjects.III. MYDATA BUSINESS IN FINANCIAL SECTORMyData businesses shall abide by the system and facility requirements to ensure the safety and security of data processing. MyData businesses shall be allowed to operate upon approval and registration electronic financial business, loan brokerage business and financial advising business using robo-advisors.MyData businesses shall be prohibited from collecting personal credit information outside the boundaries of data subjects’ right to information privacy.IV. REGULATIONS ON CREDIT BUREAUSCredit bureaus shall (i) maintain appropriate system and facility requirements to ensure the safety and security of data processing, (ii) maintain an adequate number of data specialis
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Mar 31, 2020

Loan Deferment Guidelines for SMEs and Small Merchants Hit by COVID-19

The FSC and the FSS along with all financial associations and federations adopted the guidelines for the loan extension of principal payments and the deferment of interest payments to be implemented beginning on April 1 for the SMEs and small merchants hit by COVID-19.The guidelines provide the minimum standard with which SMEs and small merchants can apply for financing support. Financial institutions may voluntarily apply more relaxed standards and expand the supporting targets.COMMON GUIDELINES► ELIGIBILITY: SMEs and small merchants directly or indirectly damaged by COVID-19 with no overdues, impaired capital or business closure► ELIGIBLE LOANS: Existing SME loans with maturity date of up to September 30, 2020, including guaranteed loans and foreign currency loans that have been issued prior to March 31, 2020. ► TERMS OF SUPPORT: A minimum of six months of maturity extensions and deferment of interest payments from the date of application regardless of the repayment method► APPLICATION METHOD: Applicants need to visit a branch of currently using financial companies for consulting. Or, depending on the company, non-face-to-face methods such as phone or fax can be possible.► APPLICATION PERIOD: April 1, 2020 ~ September 30, 2020ADDITIONAL GUIDELINES► INSURANCE COMPANIES: If policy loan holders qualify as SMEs or small merchants hit by COVID-19, they are also subject to the deferment of interest payments► SPECIALIZED CREDIT FINANCE BUSINESSES: Credit card loans, credit loans, secured loans, installment financing and leases will be subject to the deferment of interest payments, while credit sales, cash advance and loans, leases or installment financing for automobiles will not be included* Please refer to the attached PDF for details.
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Mar 31, 2020

Special Low-rate Loans to be Introduced for Small Merchants Hit by COVID-19

As a part of the KRW12 trillion financing support package for the small merchants hit by COVID-19, local banks will begin providing super low-rate loans in the amount of KRW3.5 trillion beginning on April 1.► ELIGIBILITY: Small business owners that (i) have high credit records whose annual income is at KRW500 million or less and (ii) satisfy qualifications as small merchants according to relevant laws► TERMS OF SUPPORT: New business loans for up to KRW30 million at a fixed interest rate of 1.5 percent with maturity of maximum one year► APPLICATION METHOD: Applicants need to visit a local bank branch for consulting. KB Kookmin Banks and Shinhan banks offer online or mobile application as well.► APPLICATION PERIOD: April 1, 2020 ~ End of 2020* Please refer to the attached PDF for details.
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Mar 30, 2020

Peer-To-Peer Lending Cap to be Lowered to Provide Investor Safeguards

The FSC and the FSS announced on March 27 their decision to lower the peer-to-peer lending cap through supervisory guidance from the previously set amount of KRW50 million to KRW30 million per year. For real estate investment products, the P2P lending cap will be lowered to KRW10 million from KRW30 million.The decision was made amid growing concerns about damages to investors due to the possibility of an increase in defaults and delinquencies in the wake of the COVID-19 crisis.The changes in the lending cap apply to retail investors and take into consideration public comments since the enforcement decree of the Act on Online-linked Financing was announced on January 28.The government plans to gradually adjust the lending cap in the future, while promoting the sound development of the P2P lending industry and investor protection.* Please refer to the attached PDF for details.
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Mar 30, 2020

Basel III Credit Risk Framework to be Adopted in Q2 2020

The FSC and the FSS announced the early adoption of the credit risk framework of Basel III beginning in late June this year, more than one year and a half prior to the Basel Committee on Banking Supervision’s recommendation of adoption by 2022.With the early adoption of Basel III rules, the government expects that the banks with high proportions of business lending will see their BIS capital adequacy ratios increase, thus enabling banks to boost capital reserves to provide more funding to businesses.EARLY ADOPTION OF BASEL IIIBasel III contains measures to lower credit risk weights for SME loans and loss given default (LGD) rates for business loans. The early adoption of the revised credit risk framework will begin gradually with domestic banks and bank holding companies with the calculation of their BIS ratios at the end of June this year.The changes to the calculation of operational risk capital (ORC) will be implemented as scheduled in January 2022.FURTHER PLANSThe government will finish up revising the relevant rules and regulations in April, while providing assistance to financial companies to ensure that their system setup and verification are done smoothly.The government will continue to work on ways to ensure that the government’s prudential regulations on financial institutions are not constraining their ability to respond flexibly in times of crisis.* Please refer to the attached PDF for details.
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Mar 27, 2020

Vice Chairman Emphasizes Importance of Effective Implementation of COVID-19 Financial Support

FSC Vice Chairman Sohn Byungdoo held a meeting on March 27 via conference call to examine the implementation of the government’s COVID-19 emergency support package and financial market stabilization measures.The following is a summary of Vice Chairman Sohn’s remarks:► FINANCING SUPPORT: Low-rate loans (1.5%) at local banks as well as maturity extensions on existing loans and deferment of interest payments will be available through all financial institutions beginning on April 1.► ON-SITE COMMUNICATION: Beginning on April 6, the FSC’s emergency financial situation room along with other relevant institutions will operate a regular on-site communication and inspection channel through conference calls or on-site visits in order to help resolve difficulties on the ground.► MARKET STABILIZATION FUNDS: On March 24, the size of the initial capital call has been decided at KRW3 trillion to launch a bond market stabilization fund, which will be expanded up to KRW20 trillion afterwards. The corporate bond purchase will start as early as April 2. A stock market stabilization fund in the amount of KRW760 billion was launched on March 25 by the Korea Exchange, the Korea Financial Investment Association, the Korea Securities Depository and the Korea Securities Finance Corp. In addition, KRW10 trillion more will be made available by the financial institutions in the private sector in the second week of April.► SHORT-TERM MONEY MARKETS: Between March 24 and 26, the Bank of Korea and the Korea Securities Finance Corp. made available approximately KRW3.5 trillion in short-term liquidity to the securities companies. On March 30, the policy banks will begin purchasing commercial paper, electronic short-term bonds and short-term credit bonds. A CP purchasing operation will be undertaken collectively by the Korea Development Bank and the Korea Credit Guarantee Fund.FINANCIAL SUPPORT PROVIDEDBetween February 7 and March 24, a total of KRW13.4 trillion (152,000 individual case
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Mar 27, 2020

KAIST Selected as Digital Finance Education Provider for 4 Years

The Financial Services Commission and the Seoul Metropolitan Government announced on March 25 that the Korea Advanced Institute of Science and Technology (KAIST) along with its consortium members have been chosen as the designated digital finance education provider.In the second half of this year, KAIST will begin to offer both degree (2-year) and non-degree (5-month) programs to cultivate more professionals in the area of digital finance, providing courses on big data, cloud computing and artificial intelligence, etc.For the next four years, KAIST will provide curriculums on digital finance to current financial industry workers, prospective fintech entrepreneurs, fintech professionals and those that are aspiring for financial sector jobs.More specific information about curriculums and admissions will be provided by KAIST College of Business at a later date.* Please refer to the attached PDF for details.
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Mar 26, 2020

Government Expands Young Adult Loan for Rent Payments to Boost Financial Inclusiveness

The FSC announced on March 26 an increase of KRW3 trillion for the young adult loan for rent payments from the previously available amount of KRW1.1 trillion to KRW4.1 trillion.The young adult loan for rent payments was launched on May 27, 2019 through an agreement between the FSC, the Korea Housing Finance Corporation and the Korea Federation of Banks with an initial goal of providing KRW1.1 trillion in loans for young adults. During a 10-month period until March 20 this year, about 25,000 young adults have benefited from low-rate loans for rent payments with the total amount of loans issued standing at KRW1.2 trillion. About 25 percent of the young adults using the loan were found to be students or job seekers without regular incomes. The loan program has had an impact in resolving housing problems of many young adults.With the increased amount of loans available for up to KRW4.1 trillion, about 60,000 more young adults are expected to benefit from the program.The FSC will continue to work for expanding the online application channels in order to improve accessibility for young adults.* Please refer to the attached PDF for details.
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Mar 25, 2020

Financial Authorities and Associations Join Hands for Effective Provision of COVID-19 Support

The leaders of the FSC and the FSS along with the representatives of all financial sector associations and federations held a meeting on March 25, and signed a memorandum of agreement to effectively deliver the COVID-19 financial support package.The following are the key points of the agreement.Key Points► Banks will work to provide funding to SMEs and small merchants through super low interest loans (1.5%).► Banks will work to provide SMEs and small merchants with information about appropriate financing products.► Banks will provide active assistance to the regional credit guarantee institutions that are facing burdens of workloads in receiving and reviewing applications.► Credit guarantee institutions will closely cooperate with banks in ensuring prompt delivery of necessary funding to SMEs and small merchants.► Banks will work to ensure that the loan and guarantee extensions as well as the deferment of interest payments are seamlessly implemented beginning on April 1.► Banks will refrain from collecting debt from businesses that are facing temporary difficulties due to the COVID-19 outbreak.► Banks will contribute to the bond market stabilization fund and actively cooperate to raise the fund when deemed necessary afterwards.► Banks will actively cooperate to promptly launch a stock market stabilization fund.► The financial regulators will ease standards on sanctions for financial institutions’ handling of the COVID-19 financial support and actively support banks’ efforts to boost liquidity requirements.* Please refer to the attached PDF for details.
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Mar 24, 2020

Measures to Stabilize Financial Markets

The government unveiled the financial market stabilization measures on March 24 to help provide sufficient liquidity to businesses and deploy market stability tools to absorb shocks in the financial markets amid the spread of COVID-19.In order to address financing difficulties and help restore stability in the financial markets, the measures will increase the financing support package from KRW50 trillion to more than KRW100 trillion. This includes financing support through policy banks in the amount of KRW58.3 trillion and KRW41.8 trillion funds to help restore stability in the country’s bond market, stock market and short-term money markets.FINANCIAL MARKET CONDITIONSThe concern over a global economic slowdown due to the spread of COVID-19 has brought market volatility in the global financial markets, thus limiting corporate financing channels. From the beginning of March, stock prices in major economies plunged and the won-dollar exchange rate spiked due to a strong dollar.Amid rising uncertainties surrounding the COVID-19, market anxiety has expanded to the corporate bond market and short-term money markets.Unlike the past financial crises, the downturn in the financial markets today started from the real economy — an abrupt slowdown in consumption, production and investment, a breakdown in global supply chains, and a drop in global trade.Due to the decline in domestic demand, a contraction in the real economy and financial market anxieties, it remains difficult to accurately predict the ripple effects of the current economic slowdown caused by COVID-19. Thus, preemptive and bold responses are required to bring stability to the markets.KEY MEASURESI. FINANCING SUPPORT FOR BUSINESSES: KRW58.3 TRILLIONA total of KRW 29.2 trillion in financing support for SMEs and small merchants will be provided.► KRW12.0 trillion in emergency financing support for small merchants► KRW5.5 trillion in special guarantees for SMEs and small merchants► KRW3.0 trillion in full
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Mar 24, 2020

Reverse Mortgage Age Requirement to be Lowered

The revisions to the Enforcement Decree of the Korea Housing Finance Corporation Act were approved at a cabinet meeting on March 24. The revisions include the changes to the reverse mortgage age requirement and the introduction of a new security deposit payback guarantee program for renters.REVERSE MORTGAGEBeginning on April 1, 2020, the age requirement for homeowners or spouses of homeowners wishing to sign up for reverse mortgage programs will be lowered from 60 years old or older to 55 years old or older.The government expects that 1.15 million additional households will be eligible for reverse mortgages due to this change. Early retirees are expected to benefit from the 1.5 percent increase in the disbursement amount beginning in 2020.As of the end of February, 2020, the accumulated number of households signed up for reverse mortgages stood at 72,000 and the total amount of disbursement stood at KRW5.3 trillion.SECURITY DEPOSIT PAYBACK GUARANTEEBeginning in June, the Korea Housing Finance Corporation (HF) will offer a security deposit payback guarantee to the recipients of HF’s jeonse loan guarantees. This new guarantee service is expected to improve convenience and lower costs for consumers.* Please refer to the attached PDF for details.
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Mar 23, 2020

Government Issues Investor Alert for P2P Lending Products

With the Act on Online Investment-linked Financing scheduled to take effect on August 27, 2020, the volume of peer-to-peer lending has continued to grow as well as its default rate. Against this backdrop, the government has issued an investor alert to urge investors to use caution before investing in P2P loan products.Investors should be aware of the risks associated with P2P loan products as they are high-risk, high-yield products with no principal guarantee.The FSC will work to promote the development of a sound P2P lending ecosystem while closely monitoring the P2P lending firms’ compliance with the relevant guidelines to help minimize the information asymmetry existing in the market. For any unfair sales practices or incidents of fraud or embezzlement, the financial regulators will take stringent measures through on-site inspections.Note to Investors► P2P loan products are not principal guaranteed and investors are responsible for their losses on their investments.► Investors are advised to check whether P2P lending firms are registered with the FSC.► Investors are advised to check P2P lending firms' financial data and other relevant records prior to investing.► Investors should approach with caution P2P lending firms with excessive investment events.► Investors are advised to check the details of disclosed information when considering investment in P2P real estate lending.► P2P loan products are high-risk, high-yield products, thus investors are advised to follow small sum and dispersed investment strategies.* Please refer to the attached PDF for details.
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Mar 23, 2020

Financial Regulators and Banks Agree to Closely Cooperate on COVID-19 Financial Support

The FSC and the FSS along with the Korea Federation of Banks and its member institutions held a meeting on March 23, and signed a memorandum of agreement to closely cooperate in the provision of the COVID-19 financial support programs.The officials agreed that providing reliefs to the SMEs and small merchants hit by the COVID-19 outbreak is a priority for the real economy. They also agreed on the importance of effectively implementing the recently announced financial support package for SMEs and small merchants. The following are the key points of the agreement.Key Points► Banks will work to provide funding to SMEs and small merchants through super low interest loans (1.5%).► Banks will work to provide SMEs and small merchants with information about appropriate financing products.► Banks will provide active assistance to the regional credit guarantee institutions that are facing burdens of workloads in receiving and reviewing applications.► Credit guarantee institutions will closely cooperate with banks in ensuring prompt delivery of necessary funding to SMEs and small merchants.► Banks will work to ensure that the loan and guarantee extensions as well as the deferment of interest payments are seamlessly implemented beginning on April 1.► Banks will refrain from collecting debt from businesses that are facing temporary difficulties due to the COVID-19 outbreak.► Banks will contribute to the bond market stabilization fund and actively cooperate to raise the fund when deemed necessary afterwards.► Banks will actively cooperate to promptly launch a stock market stabilization fund.► The financial regulators will ease standards on sanctions for financial institutions’ handling of the COVID-19 financial support and actively support banks’ efforts to boost liquidity requirements.* Please refer to the attached PDF for details.
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Mar 23, 2020

FSC Designates 7 Additional Financial Solutions for Regulatory Sandbox

The FSC designated seven additional financial solutions as ‘innovative financial services’ to be included in the regulatory sandbox program on March 20, 2020. The FSC has designated a total of 93 ‘innovative financial services’ since the launching of the regulatory sandbox on April 1, 2019.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. A small sum foreign stock investment platform using reward points from affiliated businesses (Shinhan Investment Corp.)2. A financial fraud or scam detection service that provides information about possible voice phishing attempts for phone calls and text messages using telecommunications and financial information (Nice Information Service, SKT, KT, LG U+)3. A mobile-based local shopping voucher platform to promote the local economy (KT)4. A USIM-based mobile authentication process that allows individuals to register e-payment methods on their mobile devices for a simpler payment process (L Fin)5. A mobile-based paperless application solution for business-related insurance products, such as fire or disaster liability insurance (Hyundai Marine Fire Insurance)67. Online-based loan comparison platforms that offer a comparison on different loan products from various financial institutions (SK Planet Owrainfo Co.)* Please refer to the attached PDF for details.
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Mar 22, 2020

FSC Chairman Holds Meeting on Financial Market Stabilization Measures

FSC Chairman Eun Sung-soo convened a meeting on March 22 prior to the government’s emergency economic meeting scheduled later in the week. Chairman Eun and the officials discussed ways to ease prudential standards for the supervision of financial institutions and the operation of an emergency financial situation room.At the meeting, Chairman Eun and the officials discussed financial market stabilization measures to be introduced at the government-wide emergency economic meeting. In order to facilitate funding flows to businesses, the FSC and the FSS will seek ways to ease prudential regulations on financial institutions. The FSC also decided to operate an emergency financial situation room in order to more proactively and comprehensively monitor various risks arising from COVID-19 and to review how the government’s response measures are being implemented.The emergency financial situation room will be headed by the FSC Chairman and composed of seasoned government officials and professionals from both the public and private sectors. It will be organized into (i) the risk management team tasked with examining the risks and conditions in the financial markets and the real economy, and (ii) the policy implementation and inspection team charged with assessing the implementation of the government’s financial support measures. The emergency financial situation room will maintain close communication with market experts and officials from the relevant associations and federations.* Please refer to the attached PDF for details.
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Mar 20, 2020

Vice Chairman Calls for Strengthening Information Sharing and Policy Cooperation

FSC Vice Chairman Sohn Byungdoo participated in the Financial Stability Board Steering Committee meeting which was held over a conference call on March 19, 2020. The steering committee meeting was held to check the effects of the COVID-19 outbreak in the global financial markets and share policy responses.The following is a summary of Vice Chairman Sohn’s remarks:The Korean government has been closely monitoring the effects of the COVID-19 outbreak on the financial markets. As the government has been working on preventive measures, the number of newly infected cases has declined. To minimize impact on the real economy, various policy tools have been applied from both the demand and the supply side. The Bank of Korea lowered the base rate to 0.75 percent and the government unveiled a KRW50 trillion additional financial support package.As capital outflows from emerging markets triggered foreign exchange market volatility, it is important to maintain stability through currency swaps between the U.S. and other countries.To minimize market instability, closer international cooperation and information sharing between countries are needed.* Please refer to the attached PDF for details.
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Mar 20, 2020

FSC Chairman Meets with Bank Chiefs to Discuss Government's Financial Support Package

FSC Chairman Eun Sung-soo met with the Korea Federation of Banks chairman and the CEOs of major banks on March 20, and discussed ways to effectively and promptly deliver the government’s COVID-19 financial support to the businesses in need.Chairman Eun and the bank chiefs agreed on the importance of cooperation and coordination between the public and private sectors, and agreed on the following.► Provide necessary funding to small merchants at a super low interest rate (1.5%)► Provide assistance to the regional credit guarantee institutions burdened with heavy workloads► Work to ensure that maturity extensions and deferment of interest payments are provided by all financial sectors beginning on April 1► Participate in reinstating a KRW10 trillion bond market stabilization fund, which was set up in December 2008 in response to the global financial crisis, and actively cooperate to increase the fund if deemed necessary afterwards► Participate to set up a stock market stabilization fund► Advice local private banks to refrain from collecting debt from businesses that are recipients of the COVID-19 financial support from policy banks► Ensure that financial institutions and employees are granted immunity from sanctions or penalties related to their handling of the COVID-19 financial support, while supporting banks’ efforts to improve their capital adequacy ratio.* Please refer to the attached PDF for details.
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Mar 20, 2020

Government Prepares to Introduce Points-Based Personal Credit Scoring System

The FSC announced on March 19 that a new points-based personal credit scoring system will be introduced on January 1, 2021, which will replace the current ratings-based credit scoring system.BACKGROUNDThe government has been pursuing a shift from the current ratings-based system (1 to 10 ratings) to a points-based system (1 to 1,000 points) in order to minimize the threshold effect when applying for loans.1 Once the change takes effect, the credit bureaus will provide personal ‘credit grades’ instead of ‘credit ratings’ to individuals and financial institutions alike.Introducing the new points-based credit scoring system requires a revision of the term ‘credit ratings’ with ‘credit grades’ in all financial and other relevant laws. The government will work on the revision of the 11 finance-related laws and regulations to facilitate a seamless transition by January 1, 2021.KEY REVISIONThe specifics of the change from ‘credit ratings’ to ‘credit grades’ are shown below.The new points-based credit scoring system will provide a more segmented credit scoring system for both individuals and financial institutions.FURTHER PLANIn order to ensure a smooth transition to the new points-based credit scoring system,the government will operate a taskforce to closely monitor the transition. The necessary revisions to the legislations are expected to be completed by the third quarter of this year. The change from the ‘credit ratings’ to the ‘credit grades’ system for financial companies’ credit scoring system (CSS), guidelines, internal regulations and standardized agreements will take place in the fourth quarter. The new points-based credit scoring system will be fully operational beginning on January 1, 2021.* Please refer to the attached PDF for details.
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Mar 19, 2020

Government Announces Additional Financial Support for SMEs and Small Merchants

The government unveiled on March 19, 2020 additional financial support measures aimed at helping the SMEs and small merchants better cope with the burden of economic slowdown amid the COVID-19 outbreak. This is part of the KRW50 trillion package program announced by the government today to better deal with the impact of the outbreak.COVID-19 FINANCIAL SUPPORTThe government unveiled financial support programs1 targeted at the SMEs and small merchants directly hit by the COVID-19 outbreak. The measures including i) extensions on the existing loans and guarantees, ii) new loans and special credit guarantees, and iii) discounts on interest rates and fees, deferment of payments, export-import financing are currently being implemented.Since the first round of financial support was announced on February 7, about KRW6.4 trillion (81,000 individual cases) was provided to mostly small merchants (68,000 cases, 84%). About 19,000 of them were restaurant businesses and 14,000 retail businesses. About 35,000 cases consisted of loan and guarantee extensions whereas newly issued loans and guarantees made up 46,000 cases. In order to continue to provide a sufficient level of financial support, the government has prepared a KRW12 trillion supplementary budget.ADDITIONAL MEASURESI. EXPANDING FINANCIAL SUPPORT FOR SMES AND SMALL MERCHANTS HIT BY COVID-19► MATURITY EXTENSION: A minimum of six-month extension on existing loans and guarantees will be provided by all banking and non-banking sectors, including savings banks, insurance companies and credit card companies. The extension will also be applied to deferred payment products and guaranteed loans.► DEFERMENT OF INTEREST PAYMENT: All financial institutions and microfinance institutions will offer a six-month deferment on interest payments for products with maturity date of September 30 or thereafter. The government will review measures to support financial institutions if they face liquidity problems.► FULL GUARANTEES FOR SMALL
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Mar 18, 2020

FSC Grants CB License to KODIT to Develop Business Credit Scoring System

The FSC granted a credit bureau license to the Korea Credit Guarantee Fund (KODIT) on March 18, 2020 to facilitate the development of a business credit scoring system using big data analysis. The new credit scoring system — modeled after Paydex — analyzes firms’ non-financial, commercial transaction history such as the frequency of sales and purchase orders, payment histories, payment capabilities to generate their credit scores.BACKGROUNDFor SMEs and small merchants, the conventional channels of credit evaluation and financing remain difficult to access especially when they have unfavorable financial records. Against this backdrop, KODIT will develop a business credit scoring system based on non-financial and commercial transaction data of businesses to help provide an alternative credit evaluation mechanism for SMEs and small merchants.EXPECTATIONThe new business credit scoring scheme will bring innovation to the current business credit evaluation system as it opens up a new way of raising capital based on non-financial credit information.I. FACILITATING CREDIT GUARANTEESMore SMEs and small merchants will be eligible to receive credit guarantees. Businesses that previously were unable to raise funds due to low business credit scores may be eligible for credit guarantees if their credit scores based on commercial transaction records are high.II. FACILITATING NEW FINANCING OPPORTUNITIESWith the new business credit scoring system, it is expected that more financing opportunities will be provided to SMEs and small merchants through financial institutions and corporate credit bureaus.► Financial institutions will be able to easily access firms’ commercial credit information in diverse forms using big data analytics.► Financial institutions are able to provide financing options to small merchants and SMEs even when they have low credit ratings.► A fintech-based accounts receivable financing for small merchants and SMEs will be developed.SCHEDULEIn the firs
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