[DigitalToday reporter Ji-young Lee] Financial MyData services are expanding beyond individuals to sole proprietors and small merchants, and evolving from simple information searches to a stage where financial tasks are carried out directly.

The Financial Services Commission is pushing to broaden the right to request transmission of personal credit information and the scope of services to all credit information subjects, and to introduce a "My AI agent". As a result, sole proprietors are expected to be able to gather and manage scattered information from multiple institutions, including financial information as well as sales and payment amounts, taxes and four major social insurance contributions, and utility bills, and use it for alternative credit assessment and other purposes.

The My AI agent is being promoted in a direction that would carry out actual financial tasks on users' instructions, including exercising the right to request interest rate cuts and the right to request debt adjustments, applying for policy funds and refinancing loans, and claiming unclaimed insurance benefits.

The fintech industry views lending as an area that can be combined with AI agents the fastest. It is also reviewing ways to link loan comparisons to the execution of refinancing. Financial groups also expect that, if joint use of personal credit information among affiliates is allowed, they can strengthen analysis and tailored financial services using data from affiliates such as securities and insurance units.

Consumer convenience from linking financial information will also expand. The government plans to build a system under which, when a person changes their name or resident registration number, agreeing to change information at one financial company will lead the updated information to be delivered to other financial companies via the Credit Information Service the next day, with implementation planned for the first half of 2027. Financial authorities plan to push revisions to the Credit Information Act to expand MyData, and to review pilot operations through innovative financial services even before the law is revised.

• The MyData market expands... fintech focuses on "loan AI" and the financial sector on "data sharing" • Sole proprietors also use MyData... the FSC pushes "My AI agent" • No need to visit each financial firm... automatic linkage of name change and resident registration number change information

As the Bank of Korea raises its base rate for a second straight month to respond to inflation and the burden of household debt, pressure for lending rates to rise is also growing.

The Monetary Policy Board raised the base rate by 0.25 percentage point to 3.00 percent per year from 2.75 percent on Aug. 27. It was the second hike after raising it to 2.75 percent at the July meeting, lifting the base rate by a total of 0.50 percentage point over the two meetings.

The central bank last raised the base rate at two consecutive meetings about 3 years and 7 months ago, after a series of hikes that ran from April 2022 to January 2023. The reasons cited for the consecutive hikes include growth strengthening more than expected led by exports and investment, continued inflation pressure, and rising risks of financial imbalances such as housing prices in the Seoul metropolitan area and an increase in household loans.

Bank lending rates had been rising even before the additional base rate increase. Based on newly issued loans at deposit-taking banks, the household loan rate in July was 4.64 percent per year, up 0.14 percentage point from the previous month for a third straight monthly increase. Mortgage rates rose 0.12 percentage point to 4.48 percent, and general unsecured loan rates climbed 0.25 percentage point to 5.97 percent.

With the base rate rising in both July and August, it could be additionally reflected in lending rates through future changes in market rates and banks' funding costs. Interest burdens are expected to increase for borrowers with floating-rate loans.

• BOK raises base rate by 0.25 percentage point to 3.00 percent... watching inflation and home prices • July bank household loan rate 4.64 percent... mortgage rate also rises to 4.48 percent

The KOSPI is trying to regain the 7,000 level, and shifts in investors' funds and trading preferences are becoming more evident. Stock market deposits fell below 100 trillion won, but margin loan balances surpassed 33 trillion won, indicating leveraged investing is rising again, while preferred stocks differ by age group. Brokerages are also watching whether to strengthen risk management in line with increased margin trading.

• [Stock market outlook] KOSPI tries again to regain 7,000... what are the variables? • Deposits fell below 100 trillion won...'leveraged investing' tops 33 trillion won • Leveraged investing rises again... will brokerages raise the bar for margin trading? • People in their 20s and 30s prefer SK Hynix, those in their 40s and 50s Samsung Electronics... Kiwoom Securities analysis of high-net-worth clients

Financial holding companies are strengthening board expertise and internal controls, while KB Financial Group is starting procedures in earnest to select its next chairman.

With KB Financial's next chairman candidates narrowed to 3, competition over the next leadership has begun in earnest. The chairman candidate recommendation committee is set to conduct second-round in-depth interviews with the 3 on Sept. 11 and then confirm the final candidate.

In particular, with Chairman Yang included among the final 3, attention is focused on whether he will win another term. As measures are reviewed to strengthen voting requirements at the committee rather than directly limiting long-term reappointments of financial holding company chairmen, KB Financial already operates on the principle of unanimous agreement by all committee members when selecting the final candidate, making the remaining vetting process a key variable.

Shinhan Financial Group is also overhauling its governance and internal control system. It plans to revise criteria for appointing independent directors, strengthen expertise evaluations using a "board skills matrix", and use an AI-based internal control platform to enhance the fulfillment of management obligations and the effectiveness of controls.

• Shinhan Financial revises criteria for appointing independent directors... also strengthens AI internal controls • KB Financial chairman candidates narrowed to 3... will Yang Jong-hee be reappointed? • KB Financial narrows next chairman candidates to 3... Kwon Kwang-seok, Yang Jong-hee, Lee Jae-geun

Issues surrounding the relocation of financial institutions outside the capital area and expanding regional financial access points also remain.

The financial union is calling for a cautious approach, saying that while the announcement on relocating financial institutions has been delayed, the discussion itself is not over.

Against this backdrop, the financial sector continues moves to expand regional sales networks and financial accessibility. iM Bank has opened branches in Jeonju and Gwangju in succession as it seeks to expand its sales network in the Honam region.

The Postal Service is also expanding linkages of financial services to allow customers to use services of commercial and regional banks at post offices nationwide, improving regional access to finance.

• Financial union: "Delay of relocation announcement is not the end"... seeks 4.5-day workweek and wage hikes • iM Bank opens Jeonju and Gwangju branches in succession... expands Honam sales network • Postal Service: "Use all commercial and regional bank services at post offices nationwide"

The supply of finance aimed at mid- to low-credit borrowers is gradually expanding beyond banks to savings banks and fintech firms.

Internet-only banks are steadily expanding related lending by raising the share of loans to mid- to low-credit borrowers to more than 30 percent, while in the secondary financial sector new product launches continue centered on the "mid-interest-rate livelihood stability loan" introduced by financial authorities.

Commercial banks are relatively cautious, but are strengthening support for vulnerable borrowers using existing products, including lowering interest rate caps on high-interest loans.

Fintech is also expanding its role in linking policy finance and private lending. As services grow that make it easy to check eligibility for government-backed loans or connect borrowers who struggle to use regulated finance with preferred lending firms, options for mid- to low-credit borrowers are widening.

Attention is also focused on whether the secondary financial sector, which has concentrated on soundness management, can again increase lending supply to mid- to low-credit borrowers as profitability and delinquency rates improve at savings banks. Still, whether an expansion of mid-interest-rate loans leads to an actual easing of interest burdens, and whether supply can be sustained without undermining soundness, remain future tasks.

• Three internet banks all push share of mid- to low-credit loans above 30 percent • "Mid-interest-rate livelihood stability loans" spread in the secondary financial sector... commercial banks say "not yet" • Shinhan Bank eases burden of high-interest household loans... cuts rate to 9.8 percent • Finnq expands diagnostic service for government-backed loans for mid- to low-credit borrowers • FINDa surpasses 100 billion won in preferred lending commitments... 10 months after launch • Savings banks post 765.8 billion won in net profit in first half... delinquency rates also improve

Competition in financial services targeting foreign customers and foreign exchange demand is also becoming more active. Banks are expanding products and specialized sales networks for foreigners, and strengthening foreign currency accounts and related services targeting travel and exchange demand.

In the fintech industry, services are increasing for foreigners who find it difficult to use domestic financial infrastructure. As the number of foreign residents and visitors rises, competition to win customers is spreading across the financial sector, from banks' foreign exchange products to fintech payments.

• KakaoBank foreign currency account event... raffle for $100 for those who collect 3 foreign currencies • Hana Bank "Travelog" foreign currency account tops 100,000 accounts • Banks heat up drive to attract foreign customers... strengthen dedicated products and specialized networks • Toss provides prepaid cards to foreign students... supports payments before account opening • Naver Pay works with BC Card and UnionPay to expand payments by visiting foreigners

Despite moves in the financial sector to strengthen consumer protection, financial fraud and security threats remain key challenges.

Recently, loan fraud involving outsiders has been uncovered in succession in the banking sector, prompting criticism that there are limits to preventing incidents with existing credit screening and internal controls alone.

In particular, it has emerged that it is not easy for financial companies to detect cases in advance when loans are managed as normal without delinquencies, or when parties disguise transactions as legitimate through falsified documents.

Security threats are also becoming more advanced in digital finance, with malware targeting banking apps and authentication methods. As financial services become more digital and diverse, the importance of consumer protection systems that can detect and block risks at the transaction stage, not only provide post-incident relief, is also growing.

• KB Financial strengthens consumer protection across entire product and service process • Outsider financial fraud repeatedly hidden in "normal loans"... banks helpless? • KB Real Estate launches "Jeonse Safety Check" service to prevent rental deposit fraud • Android malware targets U.S. banking apps... also disables authentication methods

Other major moves in the finance and fintech sectors were compiled.

In the platform and financial sectors, moves continued to strengthen competitiveness through partnerships and business restructuring. Kakao drew attention for the possibility of a revaluation of corporate value after its split, while Naver and Toss teamed up with Hyundai Card and Hana Bank, respectively, to expand membership and savings products.

• Kakao stock valuation changes after split... AI premium vs X discount • Naver launches Edition 3 with Hyundai Card... strengthens membership benefits • Toss and Hana Bank launch season 2 of "Hana Pedometer Savings"... capped at 20,000 accounts

Financial holding companies and banks expanded inclusive finance such as support for small and medium-sized companies and easing burdens on vulnerable borrowers, while also accelerating cooperation on new businesses. KB Financial and KB Kookmin Bank strengthened industrial safety and guaranteed loan support, while Shinhan Financial moved to cooperate with Visa on stablecoin and AI payments and Shinhan Bank lowered caps on high-interest loans.

• KB Financial supports industrial safety for 446 small and medium-sized firms... expands second project • KB Kookmin Bank supports 350 billion won in guaranteed loans for firms in industrial complexes • Shinhan Financial cooperates with Visa on stablecoin and AI payments • Shinhan Bank eases burden of high-interest household loans... cuts rate to 9.8 percent

They also pursued support for advanced industries, small and medium-sized companies, and vulnerable groups. Woori Bank and Hana Bank supplied large-scale funding to advanced industries and partner small and medium-sized firms, respectively, while Hana Financial moved to support AI and digital jobs for middle-aged people. IBK Industrial Bank of Korea supported the recovery of financially vulnerable people by writing off long-term delinquent debt.

• Woori Bank and KIBO supply 1 trillion won to semiconductors, physical AI and AI data centres • Hana Financial opens AI and digital job centre for middle-aged people in Seo-gu, Gwangju • Hana Bank, Hyundai Mobis and KIBO provide 500 billion won in financial support for partner small and medium-sized firms • IBK writes off 120 billion won in long-term delinquent debt... supports more than 5,000 people

Brokerages moved to expand business in overseas markets and alternative investments. Mirae Asset and Toss Securities are reviewing the acquisition of a Japanese securities firm to seek to expand global platforms, while Korea Investment & Securities participated as a PF arranger and financial investor in the development of the Gunsan AI data centre.

• Mirae Asset and Toss Securities review acquisition of Japanese securities firm... speed up global platform expansion • Korea Investment & Securities joins Gunsan AI data centre development... to arrange PF and invest financially

The simple payments industry is expanding beyond payments into points and memberships, card linkages, and settlement services for merchants.

Naver Pay is expanding payments and point partnerships in offline daily-life areas such as gas stations and coffee chains, and Kakao Pay introduced a service linking cards and simple payments.

Apple Pay is also diversifying payment methods by adding a points payment function. In delivery platforms, mobile meal voucher payments linked to Payco have been introduced, increasing daily payment touchpoints. DailyPay is expanding into supporting cash flow for small merchants by providing early settlement services that pay sales proceeds twice a day to merchants listed on delivery apps.

• Naver Pay and SK Energy expand gas station payment and point partnerships • DailyPay early settlement for Baemin and Coupang Eats... pays sales proceeds twice a day • Kakao Pay launches "My Card Money Link"... applies first to Hana Card debit cards • Naver Pay promotion with Mammoth Coffee through "Npay Connect" • Apple Pay changes significantly... now allows payments with points • Baemin links with Payco... supports mobile meal voucher payments

Elsewhere in the fintech industry, service areas expanded from AI-based financial management to mid- to low-credit lending and early settlement. Firms are strengthening services such as the right to request interest rate cuts, loan brokerage, policy finance diagnostics and early settlement, while Hecto Financial and the Korea Fintech Industry Association moved to enhance global competitiveness and AI reliability.

• Banksalad users of AI-based interest rate cut request up 125 percent • FINDa surpasses 100 billion won in preferred lending commitments... 10 months after launch • Finnq expands diagnostic service for government-backed loans for mid- to low-credit borrowers • DailyPay early settlement for Baemin and Coupang Eats... pays sales proceeds twice a day • Hecto Financial selected in Asia fintech top 30 at "AFA Awards 2026" • Korea Fintech Industry Association and Wisestone join hands to strengthen AI reliability