Partnership to support local credit union operations and services

Hong Du-seon (right), chief executive of KoData, and Cho Bong-eop, managing director of the MG Community Credit Federations, pose for a photo at the MOU signing ceremony held at KoData's headquarters in Yeouido, Seoul, on Thursday. [KoData]
Hong Du-seon (right), chief executive of KoData, and Cho Bong-eop, managing director of the MG Community Credit Federations, pose for a photo at the MOU signing ceremony held at KoData's headquarters in Yeouido, Seoul, on Thursday. [KoData]

The MG Community Credit Federations and Korea Credit Data Co. (KoData) announced Monday they will collaborate on data-driven identification of promising businesses and financing support.

The two organizations signed an MOU at KoData's headquarters in Yeouido, Seoul, on Thursday. The agreement was drawn up as part of efforts to activate the "2030 Regional Regeneration and Social Solidarity Finance Package," a key initiative of the MG Community Credit Federations' Vision 2030 Committee. Its central aim is to improve financial access for social solidarity economy organizations.

The partnership is expected to bring greater precision to financing for small local businesses, including social solidarity economy organizations, through data-based credit screening.

Under the agreement, the two organizations will jointly explore ways to apply KoData's corporate database to the credit operations of the MG Community Credit Federations and its local credit unions. They plan to broaden financial access for social economy organizations and strengthen credit risk management. Depending on the outcome of consultations, they also intend to offer the central federation and local credit unions trial access to select data or web services.

To that end, KoData will draw on its database of more than 15 million companies to identify small businesses with growth potential, and will propose ways to use data for risk management through corporate network analysis, post-lending monitoring and early-warning systems for default risk.

The MG Community Credit Federations will serve as the overall coordination hub for the partnership and will support local credit unions in participating in pilot tests and evaluations as needed. The two organizations plan to review the practical applicability of the data and its expected impact before gradually expanding the scope of their cooperation.


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