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The Korea Herald
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THE INVESTOR
June 15, 2024

Finance

Jeonbuk Bank to develop cross-border credit rating system with Cambodia

  • PUBLISHED :May 19, 2024 - 17:04
  • UPDATED :May 19, 2024 - 17:04
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(From left, front row) Credit Bureau Cambodia Deputy Gov. Rath Sovannorak, Korea Credit Bureau CEO Hwang Jong-sup and Jeonbuk Bank CEO Baek Jong-Il pose for a photo during a signing ceremony at the Cambodia-Korea Business Forum in Seoul, Thursday. (Jeonbuk Bank)

Jeonbuk Bank signed a memorandum of understanding with Credit Bureau Cambodia and Korea Credit Bureau, the leading credit rating agencies in Cambodia and Korea respectively, to provide credit information services for Cambodian customers.

The signing ceremony, held during the Cambodia-Korea Business Forum in Seoul on Thursday, was attended by Cambodian Prime Minister Hun Manet, Korean Industry Minister Ahn Duk-geun and other officials from both governments.

Jeonbuk Bank, in collaboration with the CBC and the KCB, will put efforts into establishing systems that provide cross-border credit-sharing mechanisms between the two countries.

Many of Korea's growing number of foreign national workers face difficulties in accessing credit from banks and financial institutions due to a lack of credit history here. Typically, when individuals move to a new country, their previous credit history is not transferable, leading to challenges in obtaining loans and higher interest rates.

The CBC and the KCB will work together to develop cross-border credit report-sharing initiatives to minimize such inconveniences.

Through this agreement, Cambodian nationals entering Korea will be able to use their existing credit history in Korea. They can also utilize the credit information accumulated in Korea when they return to their home country. This will make financial activities more convenient for Cambodians living in Korea.

"The (memorandum of understanding) stems from Jeonbuk Bank's unwavering commitment to promoting financial inclusion. As a leading bank to support migrant workers in Korea with financial solutions, we are delighted to collaborate with CBC and KCB to provide Cambodian nationals with an enhanced range of benefits and differentiated financial services," said Baek Jong-Il, CEO of Jeonbuk Bank.

Jeonbuk Bank has become the first regional bank in Korea to enter the global market, acquiring Phnom Penh Commercial Bank in Cambodia. The bank aims to gradually expand such cross-border initiatives to countries other than Cambodia, especially targeting countries with a high proportion of Jeonbuk bank users.

By Kim Jun-hong (hongie@heraldcorp.com)

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