On the 18th, major South Korean banks and fintech firms like Naver Pay, Kakao Pay, and Toss introduced a new service that enables small business owners to refinance their credit loans online. This initiative aims to ease the financial stress experienced by small business owners by widening access to better loan terms. The service allows entrepreneurs to compare credit loan rates and limits from 18 financial institutions through an online platform, marking an expansion from previous services which focused primarily on personal loans and mortgage refinancing.

The refinancing service is available to individual business owners who are 19 years or older and hold a business registration certificate. For instance, KB Kookmin Bank offers a maximum refinancing limit of 300 million won when done through a branch, and 200 million won via non-face-to-face channels. Meanwhile, Shinhan Bank allows switching up to 100 million won. Certain loan products, such as those related to real estate rental businesses, are excluded from this service, ensuring that it targets small and mid-sized enterprises rather than larger investments.

Moreover, this new loan switching feature can also be accessed through prominent loan comparison platforms operated by major fintech companies. Users only need to input their resident registration number to retrieve their scattered loan information and receive suggested refinancing options based on their business income and location. This collaborative effort among banks and fintech firms reflects a significant step towards inclusive finance for South Korean small business owners, potentially revitalizing the sector by enabling easier access to favorable loan conditions.