South Korea has launched a mid-rate livelihood stability loan for mid-to-low credit borrowers in the bottom 50 percent of credit scores. The unsecured loan allows up to 10 million won per borrower across all financial institutions. Initial providers include six savings banks. Interest rates range from 5.9 percent to 15.27 percent, depending on borrowers’ credit profiles and lenders’ systems. Borrowers must agree not to buy a home for 1 year or until full repayment.

Tighter household loan rules are putting pressure on the revenue models of small and mid-sized fintech firms that grew on loan comparison and recommendation services. As lenders’ capacity to supply loans shrinks, brokerage income via platforms could also contract. Woori Bank has halted new credit loans and refinancing applications via major loan comparison platforms. Fintech firms are expanding into data and AI, licences and corporate services, with moves such as Finda’s savings bank acquisition push, BankSalad’s health and insurance data services, and PFCT’s overseas B2B risk solutions.