In the fourth quarter last year, the share of loans to mid- and low-credit borrowers at all three internet-only banks topped 30%. The figure exceeded the target set by the financial authorities.
According to a disclosure by the Korea Federation of Banks on the 27th, the share of credit loans to mid- and low-credit borrowers at internet-only banks in the fourth quarter last year (based on average outstanding balance) was KakaoBank 32.1%, Kbank 32.5%, and Toss Bank 34.9%. The target share suggested by the financial authorities was 30%.
Based on new loan originations in the fourth quarter, KakaoBank was 35.7%, Kbank 34.5%, and Toss Bank 48.8%, all surpassing the 30% target.
The share of credit loans to mid- and low-credit borrowers refers to the proportion, within the bank's total household credit loan balance (average), accounted for by personal credit loans to borrowers in the bottom 50% of credit scores based on KCB, credit loans to sole proprietors, and policy finance loans that exceed the guaranteed limit.
The financial authorities unified the 2024 target for the share of credit loans to mid- and low-credit borrowers at internet-only banks to "average balance of 30% or more," and from last year also added the criterion of "30% or more of new loan originations."