Internet-only banks, regional lenders expand alliances to corporate lending
Korea’s internet-only banks and regional lenders are expanding their co-lending partnerships beyond consumer credit into corporate lending, as they each look for new ways to grow their businesses, industry officials said Monday. KakaoBank and Busan Bank are preparing to launch a joint lending program for small and medium-sized businesses and sole proprietors, following a memorandum of…
Internet-only banks and regional lenders in Korea are broadening their co-lending partnerships from consumer credit to corporate lending, seeking new avenues for growth, according to industry officials. KakaoBank and Busan Bank have inked a memorandum of understanding aimed at launching a joint lending program for small and medium-sized enterprises and sole proprietors in April.
This collaboration will leverage KakaoBank's extensive digital infrastructure alongside Busan Bank's expertise in evaluating and managing business loans in its regional market. While their previous co-lending initiatives primarily targeted consumer credit, the new venture represents a significant shift. Prior examples include Toss Bank and Kwangju Bank's joint loan in 2024, Kbank and Busan Bank's offering, and KakaoBank and Jeonbuk Bank's program for salaried employees in 2025.
The expansion into corporate lending is seen as the next logical step for both parties. The primary motivation behind this move is to diversify their revenue streams, as internet-only banks have traditionally depended on household lending, and regional lenders can broaden their customer base.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
