KakaoBank Reaches 1.7 Million Self-Employed Users with 7 Trillion Won in Loans
KakaoBank’s self-employed banking service has surpassed 1.7 million active business users four years after its initial launch, according to a report by news.tf.co.kr. Cumulative loans supplied to small business owners have reached 7 trillion won, driven by higher demand for credit support among medium and low-credit borrowers.
The digital bank rolled out its dedicated self-employed banking services in November 2022. Active user metrics show steady growth over the four-year operational window. Monthly active users reached 1.2 million by the end of October, while weekly active users exceeded 1 million. Earlier adoption metrics showed 80,000 monthly active users at the two-year mark and 1 million at the three-year mark.
Credit Supply and Support for Medium and Low-Credit Borrowers
Total self-employed loan balances exceeded 4 trillion won at the end of September. The funding spans multiple credit products, including self-employed credit loans, guarantee-backed loans, interest-supported guarantee loans, and real estate-backed loans.
Data from the service indicate that three out of five self-employed loan customers fall into the medium- and low-credit categories. KakaoBank attributes this reach to an upgraded credit evaluation model designed to account for specific traits of small business owners.
Financial cost reduction efforts accompanied the lending expansion. Following guarantee-backed loan rollouts in 2023, the institution partnered with regional credit guarantee foundations across South Korea. These agreements delivered 28.0 billion won in guarantee fee support and cashbacks alongside 24.0 billion won in interest support savings for borrowers.
Real Estate Mortgage Products and Business Tools
The real estate collateral loan product for sole proprietors, launched in October of last year, offers credit limits up to 1 billion won. Average execution rates sit at 3.74% annually, with current pricing ranges spanning from a low of 3.04% to a high of 7.89% annually.
Beyond direct financing, the banking application hosts a suite of administrative tools. Business owners can access VAT calculation utilities, policy fund finders, government subsidy directories, and small business consulting services inside a single interface.
Upcoming Refinancing Products and Joint Lending Plans
KakaoBank plans to roll out a refinancing product this month allowing business owners to transfer external self-employed loans into KakaoBank real estate collateral loans. A joint lending product with Busan은행 is scheduled for release next year to broaden capital access for regional enterprises.
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