South Korean digital banks boost small-business loans by over 50% in H1
K-Bank, Kakao Bank and Toss Bank increased their small-business loan portfolio by more than 50%, reaching 8.32 trillion won in the first half of the year.
First-half financial reports show that K-Bank, Kakao Bank and Toss Bank collectively lifted their small-business loan balance by 50.6% to 8.32 trillion won (about US$5.98 billion) as of June. Their total loan portfolio reached 83.63 trillion won. The growth is a response to stricter household lending rules, leading the digital banks to pursue corporate-finance opportunities.
In addition to extending credit to small enterprises, the institutions plan to diversify income streams by developing fee-based businesses, including platform services and asset-management offerings. This strategy highlights the expanding role of internet-only banks in South Korea’s financial sector. The shift may reshape credit availability for small firms amid regulatory changes.
