K-Bank's Small Business Loans Exceed 3 Trillion Won, Focus on Guarantees and Collateral

K-Bank is rapidly expanding its corporate finance sector, primarily through small business loans. By increasing the proportion of loans based on guarantees and collateral, the bank has enhanced its stability while significantly reducing its delinquency rate, achieving growth alongside improved financial health.

As of May, K-Bank announced that its small business loan balance has surpassed 3 trillion won. This marks a 1 trillion won increase within just six months after exceeding 2 trillion won in November of last year.

The balance of guarantee loans has surged 76% this year, rising from 330 billion won at the end of last year to 580 billion won currently. The bank's fully online real estate collateral loan product, the CEO Real Estate Loan, has also seen a 40% increase, growing from 560 billion won at the end of last year to 780 billion won now.

According to data from the Korea Federation of Banks, K-Bank's average interest rate for small business collateral loans was 3.44% as of the end of the first quarter, the lowest in the banking sector. This competitive rate allows small business owners to refinance loans from other financial institutions, including mutual finance, savings banks, credit cards, and capital companies, thereby alleviating their interest burdens.

K-Bank continues to provide credit to small business owners with lower credit ratings. By enhancing its credit assessment model and utilizing various alternative data sources, including telecommunications, platforms, and card merchant information, the bank has improved access to finance. As of the end of the first quarter, the proportion of small business credit loans for mid-to-low credit borrowers reached 34%.

The strategy of expanding corporate loans focused on small businesses has proven effective, with the bank's net profit for the first quarter rising 106.9% year-on-year to 33.2 billion won. The total number of customers also increased by 540,000 compared to the end of last year, reaching 16.07 million.

The quality of the loan portfolio has also shown significant improvement. The proportion of guarantees and collateral within small business loans increased from 26% in the first quarter of 2025 to 43% in the first quarter of this year, establishing a stable portfolio. The delinquency rate improved dramatically from 1.38% to 0.55% during the same period, marking the lowest level among internet banks.

K-Bank plans to launch dedicated credit loan products linked to major platforms and expand its offerings in real estate collateral loans and facility financing products to continue enhancing its competitiveness in corporate finance.

* This article has been translated by AI.

Lee Seongjin