Busan Bank becomes first regional lender to adopt small-business credit scoring model

Busan Bank became the first regional bank in South Korea to apply the Small Business Credit Bureau model — a specialized credit scoring system promoted by the Financial Services Commission — to its loan products, the bank announced Thursday.

The SCB model supplements traditional personal credit scores from agencies such as Nice and KCB with non-financial data including a borrower's sales figures and surrounding commercial district conditions, allowing lenders to assess individual business owners more precisely. Unlike conventional loan reviews that rely primarily on credit agency scores, the SCB framework incorporates business registration data and commercial area analysis to evaluate a small-business owner's future repayment capacity and growth potential.

Busan Bank revamped its existing "ONE Credit Loan Soho Mid-rate Loan" product as the "ONE Credit Loan Soho Growth Loan" starting late August, applying SCB-based interest rate benefits. Customers who receive higher SCB ratings will be eligible for a preferential rate of up to 0.3 percentage points, reducing the financial burden on small-business owners.

The bank also plans to expand the use of SCB in stages. It intends to apply the model to the screening and rate-setting process for a secured loan product exclusively for small-business owners, set to launch in the second half of this year, and to participate in the Financial Services Commission's planned "Saetdol Loan" program for individual business operators.

Through these measures, Busan Bank said it will broaden financial support tailored to the business stage and credit profile of customers — from those just starting out to those who have reached a stable growth phase.