Major banks will begin a pilot run from August of a "small business tailored credit rating model (SCB)" that reflects small merchants' future growth potential, in step with the Financial Services Commission's push to overhaul the credit evaluation system.

Banks plan to reflect SCB grades in loan screening to provide tangible benefits such as preferential interest rates and higher limits, the financial sector said on April 10. The aim is to improve access to funding by moving away from evaluation methods focused on collateral and past financial history and instead factoring in non-financial information such as sales, industry and growth potential.

KB Kookmin Bank will apply preferential rates and higher limits during the pilot period, focusing on business loan products such as "KB Ilsacheonri Loan" and "KB Together Loan" depending on SCB grades.

A KB Kookmin Bank official said the bank expects participation in the pilot project to ease blind spots in financial support for small business owners and add vitality to the people's economy.

Shinhan Bank will apply preferential screening standards to borrowers with strong SCB grades among new personal business loan applicants. It plans to improve loan limits and rate terms, and to continue refining its evaluation system based on the pilot results.

A Shinhan Bank official called the model's adoption a turning point that expands finance's perspective from past credit to future growth potential, and said the bank will expand support so more small business owners can receive tangible financial benefits.

Hana Bank will reflect SCB grades in reviews for its "Hana The SOHO Credit Loan" and plans to launch new tailored products with preferential benefits applied by grade. It also plans to develop and advance its own SCB model based on pilot data.

A Hana Bank official said the bank will raise the level at which small business owners feel financial benefits through building an SCB system and developing tailored products.

Woori Bank plans to complete verification and set preferential benefit levels for introducing SCB in the first half, then apply it to new loan screening from the second half. Support will be about 300 billion won, offering preferential rates and higher limits to small business owners with strong growth potential.

Kim Ji-il (김지일), a deputy head of Woori Bank's risk management group, said it will be a new opportunity for small business owners whose business capabilities were not fully assessed due to a lack of financial information, and said the bank will expand inclusive finance through a more sophisticated screening system.

IBK Industrial Bank of Korea plans to begin a pilot from the third quarter that calculates loan limits and interest rates by reflecting the SCB model alongside its existing in-house credit rating grade.

Bank President Min-young Jang (장민영) said the overhaul is a policy turning point that goes beyond simply expanding financial support to strengthen data-based inclusive finance, and said the bank will actively support small business owners' recovery of vitality.

The SCB rollout is seen as a chance to shift the financial sector's credit evaluation system from a past-focused approach to a future-focused one. As small business owners with limited credit history can receive more sophisticated evaluations based on growth potential and competitiveness, improvements in funding conditions and an expansion of inclusive finance are expected.