Kang Kyeong-hoon
The author is a professor of Business Administration at Dongguk University.
Kim Yong-beom, the presidential chief policy secretary, recently drew attention with a social media post highlighting problems in Korea’s credit evaluation system. His remarks touched on a longstanding issue in finance: Traditional credit scoring often disadvantages low- and middle-credit borrowers and younger consumers.
Visitors attend Korea Fintech Week 2025 at the aT Center in Seocho District, southern Seoul, on Nov. 26, 2025. The annual event brings together financial institutions, fintech companies and industry experts to showcase emerging technologies and discuss trends shaping the future of digital finance. [YONHAP]
Most credit assessment systems rely heavily on past financial records. Critics argue that this approach structurally excludes many borrowers and weakens the market for mid-interest-rate loans, creating what some describe as a “donut economy” in which the middle tier is underserved.
