KB Kookmin Bank integrates guarantee application and loan disbursement in 'Bojeung Dream' app

KB Kookmin Bank has partnered with the Korea Federation of Credit Guarantee Foundations to launch a one-stop, fully contactless guarantee-backed loan service for small business owners and sole proprietors.

The service links KB Kookmin Bank's banking-as-a-service platform to "Bojeung Dream," the Korea Federation of Credit Guarantee Foundations' integrated app. Customers can complete the entire process — from submitting a guarantee application and uploading documents to receiving loan disbursement — without visiting a bank branch.

To mark the launch, KB Kookmin Bank is running a promotional event through Oct. 30. Customers who obtain a guarantee certificate through the Bojeung Dream app, execute a loan with KB Kookmin Bank, and then enter the event via KB Star Business Banking will receive 50 percent of their guarantee fee reimbursed, up to 300,000 won ($223).

KB Kookmin Bank has been steadily expanding contactless financial services for small businesses. The bank previously launched a contactless proxy loan service with the Small Enterprise and Market Service, and in June it integrated the Gyeonggi Credit Guarantee Foundation's mobile preferential guarantee program into its banking app, allowing customers to apply for loans without installing a separate app.

"We hope this service makes it easier for small business owners and sole proprietors to access the financial support they need," a KB Kookmin Bank official said. "We will continue to expand inclusive finance services that customers can genuinely feel the benefit of."

Meanwhile, data from Korea Credit Data showed that average sales per small business establishment rose 4.53 percent in the second quarter of this year compared with the same period a year earlier, but average expenditures climbed 5.83 percent. Over the same period, the average profit margin fell 0.92 percentage points to 25.2 percent, while overdue loans held by sole proprietors totaled 15.2 trillion won ($11.3 billion).