To prevent recurrence of a financial crisis, and further strengthen the domestic financial industry,
major financial companies in Korea formed consensus on sharing credit data with each other.
Consumer credit, which had been expanding rapidly since the Asian financial crisis, has had a positive impact of ordinary citizens’ better access to credit in the mainstream financial system, but has also resulted in undesirable side effects such as rising delinquency and a soaring number of defaulters.
Since then, various measures have been reviewed to prevent such a crisis in the financial industry, and as part of such efforts, it has been pursued to improve the credit reporting system for risk management of consumer credit.
Beyond the delinquency data which was previously shared in the past, the new system was needed to make prevention of a financial crisis and better risk management possible by drastically expanding the level of data sharing related to financial transactions. To this end, 18 major financial institutions in Korea participated in establishment of KCB as shareholders.
As a result, Korea has taken its credit reporting system to the next advanced level, by having the advanced credit bureau system in place.
|Company Name||Korea Credit Bureau (KCB)|
|CEO||Jong Sup Hwang|
|Business License||Credit investigation & credit inquiry|
|Capital||50 Billion Korean Won (18 financial companies as shareholders)|
|Date of Establishment||February 22, 2005|
18 major financial companies in Korea built KCB together by participating as shareholders,
and since its foundation, KCB has been operated through transparent and fair governance to make
sure that it will benefit the financial industry as a whole.
KCB has aimed for ‘the Best Practice CB’ which can be the model for other bureaus home and abroad
to benchmark first by going through every step in a proper and exemplary manner in building the bureau
and making it the best-working one, instead of putting an emphasis on external profit or volume of
revenue in the short-term view.
Beyond CBfor the Best Practice CB
“KCB will pursue momentum for continuous growth and further development in the next 10 years
while ensuring internal stability and staying on the right path as a best practice credit bureau
which any company in the world has wanted to benchmark
first based on the outstanding performance it has achieved since its foundation.”
KCB has taken the lead in boosting competitiveness of the Korean financial industry and
realizing the advanced credit society.
Financial companies have become to manage potential default risk more effectively by better evaluating credit status of individual consumers, using credit data services provided by KCB, while reducing financial risk and costs, and offering more competitive products and services to consumers at the same time.
Also, consumers can enjoy more convenient financial and other services in their daily lives as loans and credit cards are approved and granted, and even telecom services are opened according to their creditworthiness.