Moon Jae-nam, representative of the Alternative Credit Evaluation Institute, noted on the 29th that the global market size for thin filers, or individuals with insufficient financial information, amounts to $38 billion (52.5 trillion won). He stated that current credit evaluation models, which are centered on financial information, have limitations in assessing thin filers, adding that inclusive finance can be realized through alternative credit evaluation models.
During a lecture at the ChosunBiz '2025 Future Finance Forum' held at the Westin Chosun Hotel in Jung-gu, Seoul, Moon said, "Financial inclusion is not just an ethical choice but a 'smart business strategy.'"
The Alternative Credit Evaluation Institute was established to evaluate credit for 'thin filers' who lack financial history, using communication data from the three major telecom companies: SK Telecom, KT, and LG Uplus, to provide services such as loans. It operates an alternative credit evaluation model called 'Equal.'
Moon stated, "Thin filers do not lack credit; rather, they have not had the 'opportunity' to prove their credit. Credit becomes entrenched like social and economic class, and social mobility is becoming increasingly restricted."
Moon mentioned that the number of domestic thin filers, including women with career interruptions, freelancers, foreign workers, students, and the elderly, reaches about 12 million. He noted that these individuals are trapped in a cycle of financial inequality characterized by low credit scores, high interest rates, heavy repayment burdens, and increased risk of debt defaults.
Moon indicated that thin filers are receiving new credit ratings through alternative credit evaluation based on communication data. In fact, under existing credit evaluations, thin filers typically receive an average rating of 5 to 6, but the use of communication data raises that average score to 3. This leads to significant improvements for foreigners with insufficient financial histories.
The Alternative Credit Evaluation Institute is also building a credit evaluation ecosystem utilizing communication data with Asian countries such as Vietnam and Indonesia.
Moon remarked, "The domestic alternative credit evaluation market is witnessing various data-driven innovations across the industry, and credit is not just a simple financial score, but rather the very way we live our lives."