The boxes to check are the 1–1000 point score and the Korea Credit Information Services' centralized information. How to raise a score and loan advertising are not covered.
This post covers the Korean credit scoring system, and the linked official sources are in Korean.
1. Definitions
| Term | Original text | Source |
|---|---|---|
| Score or grade | A relative indicator in which a CB (credit bureau) classifies creditworthiness into a score or grade using financial transaction and public information | [S2] |
| Information used in the calculation | Repayment history, debt level, length of credit history, types of credit | [S2] |
The grades 1–10 in the Bank of Korea column (2014-02-10) describe the system at the time of that article. For the end of grade calculation from 2021, see the Financial Services Commission announcement. (S2, S3)
2. The score system from 2021-01-01
| Item | Before the switch | After the switch (2021-01-01) | Source |
|---|---|---|---|
| Indicator provided by CBs | Grades 1–10 calculated | Only the personal credit score of 1–1000 points | [S3][S4] |
| Grade calculation | Yes | CBs do not calculate grades | [S3][S4] |
| Internal grades of companies and financial institutions | — | Unchanged | [S3][S4] |
The laws were amended on October 28, 2020. (S3, S4)
3. Table of statutory boxes changed to scores
These are the values at the time of the switch (2021.1.1). They are recalculated every April 1 from the previous year's distribution. For the current cutoffs, see that year's disclosure. (S4)
| Use | Before the switch | At the switch (2021.1.1) |
|---|---|---|
| Credit card issuance | Grade 6 or better | NICE 680 or above, or KCB 576 or above. Top 93%, or a long-term delinquency probability of 0.65% or less |
| Low-income financing (Sunshine Loan, etc.) | Grade 6 or lower | NICE 744 or below, or KCB 700 or below. Bottom 20% |
| Preferential credit limit for mid-rate lending | Grade 4 or lower | NICE 859 or below, or KCB 820 or below. Bottom 50% |
| Tie-in sales practices | Grade 7 or lower | NICE 724 or below, or KCB 655 or below. Bottom 10% |
Product names such as Sunshine Loan are quoted from the press release. This post does not recommend signing up.
For NICE and KCB, only the names given in the Financial Services Commission press release are used. This post does not assess which company scores higher.
4. Where to look
| What you see | Site | Boxes shown |
|---|---|---|
| Centralized loans, delinquencies, guarantees and insurance | credit4u.or.kr [S5][S7] | General/insurance reports |
| Personal credit score 1–1000 | CB lookup screens (the Financial Services Commission points to these screens after the switch) [S4] | Score, cumulative rank |
| Loan and delinquency guidance | Financial Supervisory Service credit information lookup [S6] | Link to credit4u |
credit4u shows centralized information. It is not the CB 1–1000 point score. (S5, S6, S7)
App advertising is not covered.
5. Checklist
| # | Box | Where |
|---|---|---|
| 1 | Whether the indicator now in use is a score, not a grade | [S3] |
| 2 | My centralized loan and delinquency records | [S5] |
| 3 | The statutory cutoffs at the switch may differ from this year's April 1 cutoffs | [S4] |
| 4 | The CB score and the Korea Credit Information Services report are different data | [S5][S4] |
| 5 | Approval and rates also use the financial institution's internal review (Financial Services Commission: more granular review) | [S3] |
Sources
- [S2] Bank of Korea, "How is an individual's credit grade determined?" (2014-02-10). https://www.bok.or.kr/portal/bbs/B0000218/view.do?menuNo=200147&nttId=10017545
- [S3] Financial Services Commission, full implementation of the switch from credit grades to scores. https://www.fsc.go.kr/no010101/75101
- [S4] Korea Policy Briefing, 2020-12-29. https://www.korea.kr/news/policyNewsView.do?newsId=148881778
- [S5] Korea Credit Information Services, personal credit information viewing service. https://www.credit4u.or.kr
- [S6] Financial Supervisory Service credit information lookup. https://www.fss.or.kr/main/prc/lo/sub/lo007.jsp?menuNo=900291
- [S7] Korea Credit Information Services financial consumer support. https://www.kcredit.or.kr:1441/fnncCnsmSprt/summary.do