LG Uplus Develops Credit Evaluation Model for Individual Entrepreneurs

[Asia Economy Reporter Lim Hye-seon] A new alternative credit evaluation service for individual business owners combining data from telecom companies, card companies, and credit rating agencies is being launched.

LG Uplus announced on the 20th that it has signed a business partnership agreement with KB Kookmin Card and Korea Credit Data (KoDATA) to develop an alternative credit evaluation model for individual business owners.

The alternative credit evaluation model for individual business owners, jointly developed by the three companies, combines LG Uplus's telecom information, KB Kookmin Card's card sales data, and KoDATA's credit information. It differentiates itself from existing credit evaluation models by integrating each company's expertise in data analysis, financial product development, and credit evaluation model development.

The three companies plan to develop the alternative credit evaluation model within this year and launch the alternative credit evaluation service for individual business owners. KB Kookmin Card intends to offer financial products specialized for small business owners and other individual entrepreneurs by applying the newly developed alternative credit evaluation model.

LG Uplus expects that once this alternative credit evaluation service is applied to financial products, individual business customers within Uplus will be able to access financial products at lower interest rates. Furthermore, if it spreads throughout the financial sector, it is anticipated to contribute to alleviating the difficulties faced by all small business owners who need to secure operating funds in an era of high interest rates.

Previously, LG Uplus launched ‘DataPlus,’ a consumer analysis platform that provides business customers with marketing channels for business strategy planning and execution based on various telecom data such as consumer characteristic information within commercial districts, media consumption information, and movement pattern data.

Additionally, LG Uplus offers an alternative credit evaluation service based on telecom data that allows thin filer individual customers, such as young adults with limited financial transaction history, to access financial products with lower interest rates.

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