Banks Partnering with Naver... Declaring 'Sleeping with the Enemy' (Comprehensive)

Big Tech and Selective Collaboration Strategy
Joining Hands in Loan and Real Estate Sectors

On February 24th, Woori Bank signed a business agreement on "Inclusive Financial Support for Small Business Owners" with Naver Financial at the Woori Bank Headquarters Gwangtonggwan in Jung-gu, Seoul. Kwon Kwang-seok (right), President of Woori Bank, and Choi In-hyuk (left), CEO of Naver Financial, are seen taking a commemorative photo.

[Asia Economy Reporter Kim Jin-ho] As digital acceleration increasingly blurs the boundaries of the financial industry, the banking sector is drawing attention by taking steps toward an 'alliance with the enemy' by partnering with big tech companies (large information and communication enterprises). This is interpreted as a strategy to maintain a cautious stance toward big tech while selectively collaborating to build a 'strategic symbiotic relationship.'

According to the financial sector on the 22nd, Woori Bank launched the 'Woori Bank Naver Smart Store Loan' in collaboration with Naver Financial, a subsidiary of Naver Finance, marking the first such product in the banking sector. This loan is exclusively for individual business owners who have been operating on Naver's representative online sales channel, Smart Store, for more than six months. Borrowers can check their loan limits and interest rates on the Naver application (app) and then complete the loan agreement and execution through 'Woori Won Banking.'

The loan limit is up to 40 million KRW, with preferential interest rates of up to 0.8 percentage points offered. A distinctive feature is that for customers who wish, an insurance service is provided that offers 3 million KRW support in case of business suspension or closure and repayment of the loan balance in case of injury or death.

The product is designed for online small business owners who have sufficient loan repayment ability but are unable to obtain loans from banks. In particular, to accommodate their need for 'quick cash,' the loan repayment method includes a passbook-style repayment (overdraft), significantly enhancing convenience.

Woori Bank plans to further expand the 'Small Business Financial Support Cooperation Project' with Naver by utilizing non-financial data and broadening the loan target in the future.

Other banks are also actively collaborating with the 'platform giant' Naver. Hana Bank partnered with Line, Naver's Japanese subsidiary, to launch the digital bank Line Bank in Indonesia. This is the first case where a bank and a non-bank big tech platform company have joined forces to create a financial institution.

Shinhan Bank chose Naver Real Estate, the nation's top real estate information platform, as a partner. Customers can easily and quickly search for and apply for Shinhan Bank's jeonse (key money deposit) loan products on Naver Real Estate. This eliminates the hassle of searching for jeonse listings and separately applying for loans at the bank, maximizing customer convenience. Shinhan Bank also provides a simple currency exchange service in partnership with Naver Pay.

A banking sector official said, "The combination of banks' financial expertise and the influence of big tech platforms offers great potential for new business opportunities," adding, "Such strategic partnerships are expected to continue until banks establish their own platforms."

Meanwhile, this strategy in the banking sector is also extending to collaborations with internet game companies. Hana Bank signed a strategic business agreement with game company Netmarble for innovative digital financial services. Shinhan Bank is also partnering with game company Nexon, which has a large MZ generation customer base, to promote joint marketing projects linking finance and gaming.

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