SKT "11st Small Business Owners Can Get Loans Up to 30 Million KRW Regardless of Credit Rating"

[Asia Economy Reporter Seulgina Jo] Small business owners selling products through 11st will soon be able to borrow up to 30 million KRW at the lowest market interest rates regardless of their credit rating.

SK Telecom announced on the 19th that it will launch the loan product for 11st small sellers, "11st E-commerce Factoring," which utilizes non-financial data-based credit evaluation, on the 20th.

"11st E-commerce Factoring" is the first innovative financial service for e-commerce small business owners launched after SK Telecom passed the Financial Services Commission's "Financial Regulation Sandbox" in October last year. SK Telecom, 11st, and Hyundai Capital planned this service to provide benefits such as increased loan limits and reduced interest rates by utilizing non-financial data for credit evaluation. It is expected that up to 40,000 11st small sellers will enjoy financial benefits from the launch of this service.

11st small sellers can additionally borrow up to 30 million KRW within six months of 11st settlement funds (sales), separate from existing loans. The loan interest rate is at the lowest level compared to e-commerce financial products offered in the market. Sellers can apply by verifying their seller membership on the 11st website and following the instructions to apply on Hyundai Capital’s application page.

To this end, SK Telecom also independently developed a "Seller Score" by analyzing non-financial big data of small sellers who consented to data use through machine learning technology. It is expected to be used as an indicator that can complement or replace existing credit evaluations based on financial information in various fields in the future.

Kim Yoon, CTO of SK Telecom, evaluated, "This innovative financial service is especially meaningful as small business owners struggling due to the novel coronavirus infection (COVID-19) can receive financial benefits through non-financial data credit evaluation." SK Telecom plans to develop services for other e-commerce sellers and offline small business owners affected by COVID-19, starting with the launch of this service.

This content was produced with the assistance of AI translation services.