Kbank Enhances SOHO Credit Scoring Model Using AI

Comprehensive Factors Reflected, Including Business Operation History and Business Information
Risk Management Capabilities Enhanced Through In-House Expertise

On April 29, Kbank announced that it has enhanced its credit scoring system (CSS) for small office/home office (SOHO) business owners by reflecting the changing business environment and customer characteristics, and by utilizing artificial intelligence (AI) technology to improve the efficiency of its analytics system.

The new system goes beyond the traditional evaluation methods centered on personal credit information by comprehensively incorporating various factors such as business operation history, business information, and transaction data. This allows Kbank to update its evaluation framework in line with the evolving business environment.

Through this enhancement, Kbank explained that it can gain a more multidimensional understanding of SOHO business owners, whose personal and business profiles are interlinked, and respond flexibly to risks that fluctuate with economic trends or industry-specific characteristics.

The data analytics system has also been technically improved. To increase the efficiency of handling large-scale data and repetitive analysis work, Kbank established an AI automation-based process for analytics and review, enabling systematic model monitoring and optimization of operational strategies for overall model management.

Additionally, this advancement was entirely carried out in-house by Kbank’s own experts, from data analytics and framework revision to the development of operational strategies, thereby internalizing its risk management capabilities.

Kbank expects that the enhancement of its CSS will further solidify the trend toward strengthening the soundness of SOHO business loans. In fact, Kbank’s delinquency rate for SOHO loans significantly improved, dropping from 1.83% at the end of 2024 to 0.60% at the end of 2025.

A Kbank official stated, "SOHO financing integrates the characteristics of both individuals and businesses, so a sophisticated credit evaluation system is essential. We will continue to strengthen the soundness and competitiveness of SOHO loans through ongoing data- and AI-based CSS enhancements."

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