K Bank's cumulative lending to sole proprietors has topped 5 trillion won. As handling of real estate collateral loans and guarantee certificate loans increases, the share of guaranteed and secured loans within corporate lending is also expanding.

K Bank said on Wednesday cumulative loans to sole proprietors stood at 5.19 trillion won as of end-June.

K Bank launched loan products for sole proprietors in 2022. Annual lending increased from 260 billion won in 2022 to 1.84 trillion won last year. It supplied 1.52 trillion won in the first half of this year. That is about 82 percent of last year's annual total.

Its loan portfolio is also expanding from a focus on unsecured credit loans to guaranteed and secured loans. As handling of real estate collateral loans and guarantee certificate loans increases, the share of guaranteed and secured loans in the outstanding balance of loans to sole proprietors rose to about 45 percent as of end-June.

Guarantee certificate loans have broadened their supply base on the back of a cooperation system with local credit guarantee foundations in metropolitan and provincial governments nationwide. Recently, it expanded the scope of cooperation to include basic local governments such as Pohang and Gumi.

Real estate collateral loans are increasing in scale on the back of competitive interest rates. Based on Bankers Association disclosures, the average interest rate on K Bank's tangible collateral loans for sole proprietors was tallied at 3.49 percent per year as of end-May this year.

As it expanded finance for sole proprietors, K Bank's share of corporate lending also grew. Corporate loans as a share of total won-denominated loans outstanding rose to 17 percent as of end-June from 7 percent at end-2025.

K Bank plans to further broaden the scope of its financial services for sole proprietors. From July 14, it will raise the per-loan limit on guarantee certificate loans to up to 200 million won from 100 million won.

During the third quarter this year, it will also expand the range of eligible collateral and loan purposes for real estate collateral loans. It will widen collateral from a focus on apartments to include row houses, multi-family homes, officetels and commercial properties, and it plans to support facility funds as well as working capital.

In 2027, it also plans to launch loan services for small and medium-sized corporations. It aims to expand into corporate finance based on its experience in non-face-to-face screening and operations built up in finance for sole proprietors.

A K Bank official said, "Supported by growth in real estate collateral loans and guarantee certificate loans, cumulative lending to sole proprietors has topped 5 trillion won." The official added, "Through raising the limit on guarantee certificate loans and expanding the scope of support for secured loans, we will respond to sole proprietors' diverse funding needs."