SEOUL, Nov. 21 (Korea Bizwire) – The financial regulator said Wednesday it will allow financial institutions to use non-financial information for their credit evaluation of an individual who applies for a loan.
Choi Jong-ku, chairman of the Financial Services Commission (FSC), made the remarks as the ruling Democratic Party and the government announced a set of measures to promote the financial technology sector that uses big data analytics.
If non-financial information, such as phone bills or transaction records of online shopping, is used for credit evaluation and approval, it will help young people and housewives, who generally have relatively low credit scores, take out loans, Choi said.
The ruling party and the government plan to revise a law to enable financial institutions to use non-financial information for credit evaluation, Choi said.
Also, the government will allow smaller credit bureaus to evaluate requests of loans from self-employed business owners, the FSC said.
Starting next year, the FSC plans to grant licenses to companies that will allow them to do business using personal information about financial transactions.
Information brokers are expected to make it easier for people to comprehensively verify their credit information, which is scattered at banks, brokerages and insurance firms, the FSC said in a statement.
Based on personal information on financial transactions and their investment patterns, information brokers can help customers effectively manage their assets, the FSC said.