KakaoBank said on Tuesday it launched its "Boss Loan Refinancing" service.

The service was introduced after the Financial Services Commission expanded the scope of its refinancing loan infrastructure to include loans to sole proprietors.

Borrowers refinancing into KakaoBank products can receive a preferential rate discount of up to 0.6 percentage point. Customers who completed a small business consulting program and are using the "KakaoBank BUSINESS Hyundai Card" can receive an additional 0.4 percentage point rate discount. KakaoBank's unsecured credit loans for sole proprietors have a maximum limit of 300 million won, higher than other banks, and offer competitive limits and rates with the lowest annual interest rates in the 3 percent range.

KakaoBank also introduced a cashback event. Customers with unsecured credit loans for sole proprietors at other banks can receive 2,000 won for checking their limit if they proceed with refinancing into KakaoBank, and can receive 50,000 won in cashback if they take out more than 50 million won. The event will run through June 30.

The service allows refinancing not only into KakaoBank but also into products offered by other partner banks. Products from banks including K Bank are currently available. KakaoBank plans to continue expanding partners, starting with additional participating commercial banks this month, to give customers more choice as a financial platform.

KakaoBank said, "Until now, options for loans to sole proprietors have been limited by bank, and refinancing has been difficult, forcing borrowers to endure the burden of rising interest rates." It added, "Through this service, we will establish ourselves as an essential app for sole proprietors and develop into a platform that provides more convenient loan services."