[비즈한국] The three major internet-only banks (K-Bank, KakaoBank323410, and Toss Bank) recently disclosed their share of loans to mid-to-low credit borrowers for the third quarter. All three banks exceeded the targets set by the government, with Toss Bank leading the pack. Toss Bank achieved the highest figures in both the share of outstanding loan balances and new loan originations. As the government continues to urge the financial sector to strengthen inclusive finance, there is a visible trend of internet banks competitively expanding products for vulnerable social groups and ordinary citizens.
The three internet-only banks exceeded the 2025 third-quarter supply target (30%) for mid-to-low credit loans. The share of mid-to-low credit loans refers to the proportion of personal credit loans, sole proprietor credit loans, and the portion of microfinance loans exceeding the guarantee limit, targeting borrowers in the bottom 50% of credit scores based on Korea Credit Bureau (KCB) standards.
Among the three, Toss Bank had the highest share of mid-to-low credit loans (based on a 3-month average balance) at 35.2%. K-Bank followed at 33.1%, and KakaoBank recorded 32.9%. Toss Bank explained, "By the end of the third quarter, the share of mid-to-low credit loans among sole proprietor loans reached 67%," adding, "Our cumulative supply of Sunshine Loan (Sunshine Loan Bank, Sunshine Loan Youth) has reached 1.13 trillion won, the highest level among banks."
Financial authorities are strengthening the disclosure standards for mid-to-low credit loan shares every year. While calculations were based on year-end balances until 2023, the method was changed to average balances starting in 2024 to address the tendency to "window dress" figures at year-end. From 2025, the amount of new mid-to-low credit loans issued was also included in the disclosure requirements.
Toss Bank also led in the share of loans based on new originations. In the third quarter of 2025, the share of mid-to-low credit loans among Toss Bank's new loans was 43.7%, making it the only one among the three to surpass the 40% threshold. During the same period, KakaoBank recorded 35.4% and K-Bank 33.9%. In the second quarter, Toss Bank alone surpassed 50%, significantly increasing its share of new originations. The financial authorities' target for new mid-to-low credit loans is also 30% (same as the average balance target); KakaoBank and Toss Bank exceeded this target from the first to the third quarter. K-Bank achieved this starting in the second quarter, after its first-quarter share remained at 26.3%.
However, while Toss Bank succeeded in increasing its loan share, it faces challenges regarding financial soundness. As of the third quarter, Toss Bank’s delinquency rate stood at 1.07%, approximately double that of KakaoBank (0.51%) or K-Bank (0.56%). Internet banks are currently working on managing delinquency rates by developing or newly adopting credit scoring models specialized for mid-to-low credit borrowers.
Among the three, KakaoBank had the lowest share of mid-to-low credit loans based on balances over the last year (Q3 2024–Q3 2025). Except for the second quarter of this year (33.1%), KakaoBank’s loan share remained in the 32% range for the other four quarters.
Regarding cumulative supply of mid-to-low credit loans, K-Bank, the first to launch (April 2017), had the lowest amount at 8.03 trillion won. The largest cumulative volume was recorded by KakaoBank, which launched in July 2017, at 15 trillion won. Toss Bank, which launched in October 2021, recorded 9.5 trillion won, a significant scale relative to its years in business.
K-Bank was the latest among the three to launch policy-based financial products (Sunshine Loan 15, Sunshine Loan Bank, and Saehimang Holssi), only starting to handle Sunshine Loan 15 this July. KakaoBank began handling them in 2020, and Toss Bank in 2023. K-Bank stated, "We are striving to provide products and services for small business owners and financially vulnerable groups," adding, "We will also pursue the advancement of our CSS and efforts to manage soundness to practice sustainable inclusive finance."
Internet banks are recently competing to expand products related to inclusive finance. On September 18, KakaoBank launched the 'Saehimang Holssi II' loan product. Saehimang Holssi is a product where banks use separate screening criteria to provide loans to those who find it difficult to borrow from banks due to low income or low credit scores. It was the first time an internet-only bank introduced such a product. Toss Bank has also announced plans to launch a Saehimang Holssi product in the fourth quarter.
K-Bank is focusing on loan products for small business owners and sole proprietors. On November 19, it launched a 'Guarantee Loan for Livelihood-Appropriate Businesses.' Livelihood-appropriate businesses are those protected under the 'Special Act on the Designation of Livelihood-Appropriate Businesses for Small Business Owners.' This includes small-scale businesses such as tofu, soy sauce, and cold noodle manufacturing, bookstore/newspaper retail, and LPG fuel retail. Sole proprietors in these sectors with a NICE credit score of 710 or higher can receive loans of up to 50 million won at an interest rate of 4.8% per annum through local credit guarantee foundation branches or K-Bank.
KakaoBank also highlighted its performance in sole proprietor loans, disclosing figures on November 30 to mark the third anniversary of its sole proprietor banking services. According to KakaoBank, two-thirds of its sole proprietor loan borrowers are mid-to-low credit holders. As of the third quarter, KakaoBank’s sole proprietor loan balance stood at 2.8 trillion won, the highest among internet-only banks.
The actions of these three banks are driven by the government's demand to expand inclusive finance. Financial authorities have made productive finance and inclusive finance core agendas and are continuously requesting cooperation from the financial sector. On November 18, the Financial Services Commission held an 'Inclusive Finance Communication and Inspection Meeting' with the five major financial holding companies (KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup), the Korea Federation of Banks, and SGI Seoul Guarantee to check the status of support from financial firms and emphasize active participation.