[Edaily Reporter Kim Se-yeon ] As loans to sole proprietors from the three existing internet-only banks (KakaoBank Corp.(323410), #Kbank, and Toss Bank) remain at around 8% of their total loan portfolio, calls are growing for the fourth internet-only bank to be designed as a “bank specializing in small business owners.” Critics point out that while existing internet banks have expanded inclusive finance—such as by achieving the target of having 30% of their credit loans go to borrowers with medium-to-low credit scores—they have not sufficiently extended their services to small business owners.

At the policy forum titled “Financial Innovation for Small Business Owners and the Role of the Fourth Internet-Only Bank,” held at the National Assembly on the 25th, measures to focus the fourth internet-only bank’s role on financing for small business owners were discussed. Since existing internet-only banks have been unable to break away from a business model centered on household loans, it was argued that the fourth internet-only bank should be explicitly mandated to provide financing for small business owners from the licensing stage onward.
Specifically, a proposal was put forward to mandate that loans to sole proprietors and small business owners account for at least half of total loans. Professor Lee Jong-in of Caroline University in the U.S. proposed that the guidelines for reviewing new internet bank licensing applications should set a minimum ratio of loans to sole proprietors and small business owners at 50% or more of total loans and specify this as a condition for approval. The intent is to set an upper limit on the proportion of household loans to prevent the bank from focusing its operations on mortgage loans or household loans to high-credit-score borrowers after launch, citing profitability as a reason.
He also emphasized the need to shift the licensing review criteria to focus not only on the size of capital but also on credit assessment capabilities utilizing alternative data and inclusivity. Professor Lee believes that in small business finance, the ability to accurately assess a borrower’s business performance and repayment capacity is more important than simply how much capital a bank has.
Professor Lee also stated, “The push to establish the fourth internet-only bank is a national project to rebuild the financial infrastructure for people’s livelihoods, providing 6 million small business owners and the self-employed—who are struggling to make ends meet amid the double blow of high interest rates and sluggish domestic demand—with access to credit and an opportunity to get back on their feet.”
Specific data to be utilized in evaluating the business viability of small business owners—which existing credit assessment systems have failed to capture adequately—was also presented. Professor Jeong Min-gye of Dongguk University proposed comprehensively utilizing sales trends, credit card and online sales, transaction records, cash flow, length of business operation, customer management data, and tax payment records. This approach moves away from reliance on collateral and past credit ratings toward evaluating current business performance and future growth potential.
However, it was also emphasized that expanding financial access for small business owners must go hand in hand with maintaining financial soundness. Rather than simply increasing loans indiscriminately, the focus should be on accurately assessing repayment capacity and business viability to provide funding to eligible businesses, while establishing a robust financial consumer protection system.
The licensing process for the fourth internet bank was suspended once last year. Four applicants—Soso Bank, Soho Bank, Podo Bank, and AMZ Bank—applied for preliminary approval but were all rejected. At the time, financial authorities determined that all four applicants generally lacked sufficient stability in funding and feasibility in their business plans.