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Small business loan barriers may ease as lenders weigh growth over credit history

South Korea plans to let small business owners with limited credit histories seek bank loans using AI-based credit assessments built on non-financial data such as sales, business type and trade area conditions. The Financial Services Commission unveiled a small business-focused credit assessment system that grades growth prospects in 10 tiers and can lift existing credit ratings. Seven banks will pilot it from August in loan screening worth about 1.8 trillion won, with expansion planned later.