Kakao Bank products make debut on Naver Pay platform
Two companies to expand loan support for sole proprietors
Kakao Bank said Tuesday that its real estate-backed loans for sole proprietors are now searchable through Naver Pay's loan comparison service.
The move follows a partnership agreement between the two companies to expand loan support for individual business owners — marking the first time Kakao Bank products have been listed on Naver Pay's loan comparison platform. The two companies also plan to add unsecured business credit loans to the comparison service before the end of the year.
Customers can look up Kakao Bank's real estate-backed loan products for sole proprietors through the Naver Pay app or website after completing identity verification and entering their personal information.
Tapping the "Apply for Loan" button redirects users to the Kakao Bank app to complete the application. Those who are not existing Kakao Bank customers will need to register for an account first. Sole proprietors actively operating a registered business can apply even without a separate business bank account.
The Naver Pay comparison service will initially cover loans secured by apartment complexes and officetel units, with plans to expand eligible collateral to include mixed-use commercial properties. Kakao Bank is currently the only financial institution offering non-residential real estate-backed loans to business owners entirely online.
Kakao Bank said the partnership is part of its broader push to widen access channels for small business owners and advance inclusive finance. The bank's sole proprietor loan product, launched in October 2022, has grown to an outstanding balance of 3.4 trillion won (about $2.25 billion) in three and a half years.
Growth has accelerated of late, with 2.1 trillion won disbursed in the past year alone. Kakao Bank said more than half of its business loan customers fall below the fourth-tier credit rating under the KCB SOHO scoring system — a sign, it said, of its commitment to inclusive finance and its role as a reliable financial backstop for small business owners.
In March, Kakao Bank cut interest rates on its sole proprietor real estate-backed loans by up to 0.6 percentage points and doubled its preferential rate benefit from 0.15 percentage points to 0.30 percentage points.
"We will continue to offer a range of innovative financial services to ease the financial burden on sole proprietor customers and help them secure the funding they need," a Kakao Bank official said.
ehkim@heraldcorp.com
