이 기사는 2021년 11월 16일 08:09 thebell 에 표출된 기사입니다.

South Korea’s peer-to-peer money transfer app Toss has decided to establish its own credit rating agency, one year after it failed to acquire SCI Information Service.

Toss is preparing to apply for preliminary approval to establish its credit bureau firm, tentatively named Toss Credit Data, early next year, industry source said on Friday.

“We are building infrastructure for authorization because we need a license to run the credit bureau business,” said an official at Toss. “We aim to apply for preliminary approval early next year.”

Toss’ decision came one year after its attempt to take over SCI Information Service failed. Toss tried to take over the credit rating agency last year to create synergy with its services and to enter the credit bureau business. However, its acquisition plan fell through as SCI Information Service’s valuation increased sharply due to the amendments to Korea's three main data privacy laws.

Market insiders had expected Toss to try to acquire SCI Information Service once again, but it has decided to launch its own business instead. This is because the revision of the Credit Information Use and Protection Act has lowered the entry barrier to the credit bureau business. A growing number of companies, mainly credit card companies and tech giants, are planning to enter the business.

“Although the market environment is changing rapidly, the current credit rating industry has many limitations, including a service design centered on providers (financial institutions) and an absence of a sophisticated credit evaluation model that can reflect characteristics of a target company,” said the official. “Toss wants to enter the market and actively provide services where a more precise and new credit evaluation model is needed.”

Toss Credit Data plans to provide services to financial institutions that require precise credit evaluation by utilizing advanced data analysis capabilities based on various financial and non-financial data.

Korea currently has are four licensed credit rating agencies, including Korea Ratings, Korea Investors Service, NICE Investors Service, and SCI Information Service, with the former three commanding about 99% market share.

With its own credit rating model, the competitiveness of Toss’ affiliates is also expected to be significantly enhanced. (Reporting by Hyun-jung Kim)