Kakao Bank products make debut on Naver Pay platform; two companies pledge to expand loan support for sole proprietors

[Provided by Kakao Bank]
[Provided by Kakao Bank]

Kakao Bank announced Tuesday that its real estate-backed loans for sole proprietors are now searchable through Naver Pay's loan comparison service.

The move follows a partnership agreement between the two companies to expand loan support for sole proprietors — marking the first time a Kakao Bank loan product has been listed on Naver Pay's loan comparison platform. The two companies also plan to add business credit loans to the service before the end of the year.

Customers can search for Kakao Bank's sole-proprietor real estate-backed loan product through the Naver Pay app or website after completing identity verification and entering personal information. Tapping the "Apply for Loan" button redirects users to the Kakao Bank app to complete the application. Non-Kakao Bank customers will need to register for an account first. Sole proprietors actively operating a registered business can apply even without a separate business bank account.

The Naver Pay loan comparison service will initially cover loans secured by apartment complexes and officetel properties, with plans to expand eligible collateral to include commercial retail units. Kakao Bank is currently the only financial institution offering non-residential real estate-backed loans to business owners through a fully non-face-to-face process.

Kakao Bank said the partnership is part of its broader push to widen access channels for small business owners and advance inclusive finance. Since its launch in October 2022, Kakao Bank's sole-proprietor loan product has grown to an outstanding balance of 3.4 trillion won (approximately $2.25 billion) in three and a half years.

Growth has accelerated of late, with 2.1 trillion won disbursed in the past year alone. More than half of its borrowers fall below a KCB SOHO credit rating of 4, meaning they are low- to mid-credit customers, Kakao Bank said, underscoring the bank's role as a reliable financial support for small business owners through inclusive finance.

In March, Kakao Bank cut interest rates on its sole-proprietor real estate-backed loans by up to 0.6 percentage points and doubled its preferential rate benefit from 0.15 percentage points to 0.30 percentage points.

"We will continue to offer a range of innovative financial services to ease the financial burden on sole-proprietor customers and help them secure the funding they need," a Kakao Bank official said.


ehkim@heraldcorp.com