1 in 5 Self-Employed Borrowers Rejected by Banks Had Strong Repayment Capacity

An analysis of approximately 430,000 self-employed individuals rejected by major banks reveals that 19.5% actually possessed strong repayment capacity. Loan assessments for self-employed applicants often prioritize collateral over business growth potential.

The funds borrowed by these rejected self-employed individuals from secondary financial institutions amount to approximately 1.3 trillion won, a figure that rises to around 17 trillion won annually when expanded to include all individual business owners.

The government is currently promoting the adoption of a specialized credit assessment model for small businesses that places greater weight on business growth potential.