Internet professional bank, medium and low credit loans exceeded the target

Last year in the fourth quarter, the proportion of low- to moderate-credit loans at three internet-specialized banks exceeded 30%. Kakao Bank, K Bank, and Toss Bank recorded loan proportions of 32.1%, 32.5%, and 34.9%, respectively, surpassing the targets set by financial authorities. Although these figures are slightly lower than previous levels, they still remain above the target values.

The proportion of credit loans to low- and moderate-credit borrowers is calculated based on the total household credit loan balance at the banks, specifically the share of loans provided to borrowers with credit scores in the bottom 50%. This figure is a target set by financial authorities to promote financial inclusion, aiming to provide more opportunities for borrowers with low credit who face difficulties obtaining loans through policy efforts.

Particularly when measured by new loan commitments, Kakao Bank’s share was 35.7%, K Bank’s was 34.5%, and Toss Bank’s was 48.8%, all exceeding the 30% target. This aligns with the background of the authorities’ recent addition of new loan commitment-based target values since last year.

Kakao Bank provided approximately 2.13 trillion won in credit loans to low- and moderate-credit customers last year, bringing its total loans since its founding in 2017 to over 15 trillion won. K Bank also reported a total loan amount of 8.3 trillion won. While these internet-specialized banks have seen rapid growth in their loan portfolios, they continue to maintain sound risk management practices.

This trend is likely to positively influence the expansion of financial inclusion by internet-specialized banks in the financial market. It also helps establish new standards in the lending market and strengthens their differentiated competitive position compared to traditional financial institutions. Market attention is focused on how these banks will achieve sustainable growth in the future.