Korea SOHO Bank Applies for Preliminary License as 4th Internet Bank

"Korea SOHO Bank," poised to offer new financial hope to small business owners in South Korea, has finally unveiled itself. The consortium led by Korea Credit Data submitted its preliminary application for the 4th internet-only bank to financial authorities on the 26th, taking its first step towards realizing its vision of becoming 'the 1st bank for small business owners.' Korea Credit Data, which has already provided practical assistance to 1.7 million small business owners nationwide through its management service 'Cashnote,' is further expanding its scope of support into the financial sector with the establishment of this internet-only bank. Cashnote, which began as a simple ledger and sales management app, has now evolved into a comprehensive platform encompassing all aspects of small business operations, including business management, financial services, product purchasing, and community features. Korea Credit Data demonstrated its financial technological prowess by establishing Korea Assessment Information, the nation's first credit rating agency exclusively for sole proprietors, in 2022, together with KakaoBank, SGI Seoul Guarantee, and KB Kookmin Bank. Recently, it has attracted additional investment from banks such as Hana Bank and IBK Industrial Bank of Korea, garnering market expectations. This consortium is being hailed as the most powerful 'dream team' in the history of internet-only bank licensing. Not only have three of the five major financial holding company banks – Hana Bank, Woori Bank, and NH NongHyup Bank – participated, but also BNK Busan Bank, a leader in regional finance, and OK Savings Bank, a strong partner in retail finance, have joined, adding depth to the financial lineup. In the non-banking sector, Eugene Investment & Securities and Woori Card have announced an expansion of customized investment and payment services for small business owners, and notably, Heungkuk Life Insurance and Heungkuk Fire & Marine Insurance are participating for the first time in the insurance industry. Its IT capabilities are also top-tier in Korea. LG CNS will be responsible for AI technology and cloud infrastructure construction, MegazoneCloud for cloud-based BaaS platforms and generative AI utilization, IT-Sen for public data linkage services, and TCIS for the digitalization of insurance services, collectively aiming to build an innovative digital financial environment. Korea SOHO Bank is also committed to mutual growth with local small business owners. It has signed a business agreement with Daejeon City for public welfare stability and the establishment of Korea SOHO Bank, and is building a dense cooperative network by sharing small business management data through MOUs with 9 regional credit guarantee foundations in areas such as Seoul, Gyeonggi, and Incheon. Kim Dong-ho, CEO of Korea Credit Data, expressed his ambition, stating, "Our goal is to become the number one bank for small business owners in South Korea, providing fair credit evaluation and practical financial services." He emphasized, "We started from a shared awareness that small business owners currently lack sufficient access to finance," and further articulated his commitment to resolving the unmet needs of the existing financial sector by stating, "By bringing together deep empathy for business owners, financial insight, and proven IT capabilities, we will introduce new financial solutions that all business owners truly need."