Naver Loan Launched for a Month: "Loan Interest Rate Increased by 2%p in One Day" (Comprehensive)

Naver Financial Loan Applicants Rejected by Mirae Asset Capital
Mirae Asset Capital "Cannot Disclose Detailed Business Criteria"

[Asia Economy Reporter Gong Byung-sun] "On the first day of launch, the loan interest rate was 4.9%, but it rose to 6.8% the very next day."

Lee Young-min (35, pseudonym), who runs a business on Naver Smart Store, experienced a frustrating situation while checking out Naver Financial's loan product launched this month. Lee said, "On the 1st, the limit was 44 million KRW with an interest rate of 4.9%, but on the 2nd, it changed to 33 million KRW and 6.8%. The interest rate increased by 2 percentage points in just one day, but since it was urgent, I had no choice but to take the loan," expressing his frustration.

Controversy is arising as the criteria for the 'Mirae Asset Capital Smart Store Business Loan' introduced by Naver Financial on the 1st fluctuate. This product is the first one released after the 'platform giant' Naver declared its full-scale entry into the loan market, known as the crown jewel of finance. It attracted significant attention in the market with its unprecedented benefits such as a minimum interest rate of 3.2%, a limit of 50 million KRW, and unsecured loans. However, concerns are emerging ahead of the full launch as loan conditions change with each inquiry, and Naver Financial and Mirae Asset Capital provide different screening results.

According to the financial sector on the 30th, the Mirae Asset Capital Smart Store Business Loan, exclusively for Naver Smart Store merchants and a subsidiary of Naver Financial, will be officially launched on the 1st of next month. Naver Financial is currently conducting a beta service since the 1st as a pilot operation before the full product launch, but complaints and protest posts from loan users are appearing on internet communities.

Kim Young-hee (40, pseudonym), a self-employed person, said, "Naver Financial showed me as eligible for the loan, but Mirae Asset Capital rejected the loan," and lamented, "I thought it was an error and kept trying, but it ultimately did not work."

In another self-employed community called 'Apeunikka Sajangida' (Because It Hurts, I'm a Boss), Jeon Sang-woo (33, pseudonym) said, "I received a 30 million KRW small business loan, a 20 million KRW emergency loan for self-employed due to COVID-19, and even a few million KRW from Kakao Bank, but I couldn't get a loan from Naver," expressing his frustration. Jeon revealed, "I have an annual sales of 500 million KRW on Smart Store, but I don't know the criteria for why I can't get a loan."

The product launched by Naver Financial offers an interest rate of 3.2% to 9.9% per annum with a maximum limit of 50 million KRW. Loan applications can be made through Mirae Asset Capital because Naver Financial is not a financial institution and cannot provide loans directly. The structure is such that Mirae Asset Capital receives the loan applications and Naver Financial conducts the credit evaluation on their behalf. After Naver Financial delivers the credit evaluation results, Mirae Asset Capital sets the limit and interest rate and issues the loan.

The key feature of this loan product is that it targets online small business owners who operate without offline stores. In the existing financial sector, store size and other factors are part of the screening criteria for business credit loans, so loans are not granted if there is no store or no collateral/guarantee.

A Naver Financial official stated, "There may be restrictions if the credit rating is low or if there are many existing loans," adding, "We are considering whether to disclose the related criteria later."

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