Credit rating system changed so loans from non-monetary institutions don't harm credit score
Arirang News
2019-06-25
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'2금융권 대출→신용등급 하락' 관행 오늘부터 사라진다
Starting today, loans from non-monetary institutions such as mutual funds will no longer blindly lower people's credit ratings in South Korea.
According to the Financial Services Commission on Monday, the amendment to the scoring system will give more weight to the amount borrowed and why it was borrowed, and less weight to where the loans come from.
The changes had already been applied to saving banks in January and will be expanded to other non-monetary institutions.
As this takes effect, 940-thousand users of insurance and venture capital companies will see their credit ratings rise by an average of 33 points
Of them, 460-thousand will see their ratings rise to Class 1.
Starting today, loans from non-monetary institutions such as mutual funds will no longer blindly lower people's credit ratings in South Korea.
According to the Financial Services Commission on Monday, the amendment to the scoring system will give more weight to the amount borrowed and why it was borrowed, and less weight to where the loans come from.
The changes had already been applied to saving banks in January and will be expanded to other non-monetary institutions.
As this takes effect, 940-thousand users of insurance and venture capital companies will see their credit ratings rise by an average of 33 points
Of them, 460-thousand will see their ratings rise to Class 1.
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