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| ▲ The emblem of the Financial Services Commission (FSC) (Yonhap) |
AI-based rating system-introduction
AI-based rating system to be introduced for small biz owners
SEOUL, April 9 (Yonhap) -- An artificial intelligence (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 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 (US$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 their 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.
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