South Korea\'s three internet-only banks kept the share of loans to mid-to-low credit borrowers in the 30 percent range in the second quarter, continuing inclusive finance. KakaoBank recorded 31.9 percent by outstanding balance and 38.4 percent by new lending, while K Bank posted 31.3 percent and Toss Bank 34.2 percent on a three-month average basis. The banks are widening access through upgraded scoring models, refinancing loans and use of alternative data.

South Korea\'s Financial Services Commission\'s mid-rate livelihood stability loan, introduced to support living expenses for mid- and low-credit borrowers, is spreading mainly among non-bank lenders. The product was first launched by six savings banks and has since been rolled out by additional savings banks and capital firms. Major commercial banks have not launched it separately and say plans remain undecided, though they have introduced their own mid-rate and inclusive finance products. Regulators are expanding household-loan volume management incentives for mid-rate lending, which could boost supply.