Viva Republica, operator of Toss, said on Monday it will launch a credit loan product for sole proprietors with IBK Savings Bank using Toss Soho Score.

The two companies signed a memorandum of understanding and began cooperation to advance data-based credit assessment for sole proprietors.

The signing ceremony was held at Toss headquarters in Yeoksam-dong, Seoul, with key officials from both companies attending, including Hyun-ho Shin, vice president of Toss’ financial business division, and Hee-sung Park, vice president of IBK Savings Bank. The companies plan to continue cooperation to expand data-based financial products, starting with the launch of a Soho Score-based credit loan for sole proprietors.

The "IBKSB x Toss Boss Credit Loan" is the first case in which the sole proprietor credit assessment model "Soho Score," jointly developed by Toss and Korea Credit Data (KODATA), is applied to an external financial institution. IBK Savings Bank combined Soho Score with its existing personal credit scoring system (CSS).

Soho Score is a model developed to advance traditional credit scoring systems used in the financial sector. While existing screening focused on standardized information such as Credit Information Service data or delinquency history, Soho Score is designed to comprehensively reflect a wide range of financial activity by using the business owner’s financial mydata.

Unlike salaried workers, sole proprietors often have irregular income structures and different ways of managing their financial history, which can work against them under existing screening systems. The product aims to address these structural limitations and provide new financial opportunities for sole proprietors with mid-to-low credit scores.

It also is expected to ease interest burdens because, if the applicant is assessed as a strong grade under Soho Score, more competitive interest rate terms than existing screening criteria may apply.

Hyun-ho Shin, vice president of Toss’ financial business division, said, "This collaboration is significant in that it is the first case where Toss Soho Score has been applied to an actual financial product." He added, "I hope it will serve as an opportunity to improve access to finance by reflecting the diverse business activities of sole proprietors."

Hee-sung Park, vice president of IBK Savings Bank, said, "Through cooperation with Toss, we have advanced the credit assessment model for sole proprietors by another step." He added, "We will expand access to finance for mid-to-low credit business owners through data-based screening and strengthen the savings bank’s role in inclusive finance."