NAVER Financial Records KRW 100 Billion in Smart Store Loans, Providing a ‘Bridge’ for New Online Businesses to Get Fina

NAVER Financial Records KRW 100 Billion in Smart Store Loans, Providing a 'Bridge' for New Online Businesses to Get Financial Stability

- NAVER Financial partners with Mirae Asset Capital and Woori Bank to create the first loan of its type in Korea to help new online businesses get started

- Expands loan opportunities for Smart Store sellers in their 20s and 30s or just getting started in business; helps over 60% of sellers get loans under more favorable conditions

- Achieves a low default rate even with the increase in loan volume, demonstrating optimal risk management

2021-10-20

NAVER Financial announced that its Smart Store Business Loan service recorded a total of KRW 100 billion (USD 85 million) during the first 10 months since its launch.

The Smart Store Business Loan is the first and only unsecured loan for online sellers who were not able to get financial services from the banking sector due to insufficient credit history or could only take out loans at high interest rates. About 60% of the sellers who got the Smart Store Business Loans were in their 20s and 30s, and 20% of them were at an early stage in business development, with less than a year as a Smart Store.

To provide more loan opportunities for Smart Store sellers, NAVER Financial expanded its partnerships with financial companies, including Mirae Asset Capital last year and Woori Bank this July. Smart Store sellers with a short history of operation get a Mirae Asset Capital Smart Store Loan while sellers with a long history of store operation and high revenue get a Woori Bank Smart Store Loan. Both work as a 'bridge' for new online businesses to move forward.

As a banking agent of Mirae Asset Capital, NAVER Financial has helped about 60% of the sellers to borrow money under more favorable conditions provided by the higher credit rating available through the Alternative Credit Scoring System (ACSS), which uses non-financial data for credit decisions. About 19.1% of these sellers got loan approval after they were unable to obtain it from other financial services. Thanks to NAVER Financial's partnerships with Mirae Asset Capital and Woori Bank, SMEs are now able to compare and choose better loan offers.

The total approval rate for Woori Bank and Mirae Asset Smart Store loans now exceeds 50%. Although more SMEs are applying for this loan, it is approved at an average of KRW 27 million (USD 23,000) with a 5.1% yearly interest rate, making it competitive in the market.

Statistics show that the size of loans has increased but the default rate remains low, demonstrating NAVER Financial's optimal risk management. There has been only one overdue case lasting more than 30 days reported since the launch of Smart Store Business Loan with Mirae Asset Capital last December.

"Smart Store Business Loans have become a leading inclusive financial service that provides a 'bridge' for new online businesses facing financial challenges," said Kim Tae Kyung, leader of the loan service at NAVER Financial. "NAVER Financial will continue to build partnerships with financial companies to support the needs of online SMEs, helping them to move forward."