Seoul: Three South Korean internet-only banks have seen a significant surge in lending to small-business owners, with an increase of more than 50 percent in the first half of the year. This development comes amidst tighter household lending rules, as revealed by the banks' financial data released on Sunday.
According to Yonhap News Agency, the combined balance of small-business loans at K-Bank, Kakao Bank, and Toss Bank escalated by 50.6 percent from the previous year, reaching 8.32 trillion won (US$5.98 billion) by the end of June. This rise is attributed to the banks' strategic shift towards expanding their lending services to small businesses in response to stricter household lending regulations.
In a bid to fuel their growth in corporate finance, the internet-only banks are not only increasing their lending to small businesses but are also planning to diversify their revenue sources. They aim to venture into fee-based businesses, including platform services and asset management, as part of their broader growth strategy.
By the end of June, the total loan balance across these three internet-only banks stood at 83.63 trillion won. This highlights their ongoing efforts to adapt to regulatory changes while continuing to support the financial needs of small-business owners in South Korea.