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Telcos to launch first-ever JV for thin filers’ financial accessibility

Officials of KT, SK Telecom, LG Uplus, Seoul Guarantee Insurance and Korea Credit Bureau pose for a photo at a signing ceremony held in SGI Building on Wednesday. (SK Telecom)
Officials of KT, SK Telecom, LG Uplus, Seoul Guarantee Insurance and Korea Credit Bureau pose for a photo at a signing ceremony held in SGI Building on Wednesday. (SK Telecom)
South Korean mobile carriers are set to launch a joint venture for the first time to join forces in enhancing financial accessibility and realizing ESG management values.

The joint venture will be using non-financial credit evaluation services based on the three telecom carriers’ collected data, to mainly help the financially disadvantaged.

Non-financial credit evaluation services will evaluate a person‘s credits by analyzing the customer‘s check card usage, shopping history and communication cost payment details. The joint venture also includes Seoul Guarantee Insurance and Korea Credit Bureau.

The five companies expect the joint venture to provide a wide range of financial benefits, from increased loan limits to lowered interest rates for students and homemakers who have restricted access to financial services due to a lack of financial history.

The three telecom carriers will each be responsible for 26 percent of the investment funds, while SGI and KCB will each be responsible for 11 percent of the investment funds as strategic investors.

By Lee Yoon-Seo (yoonseo.3348@heraldcorp.com)
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