Banksalad Develops Alternative Credit Scoring Model Using Spending Data

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "AI-based customized news recommendation and summary service" developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. "7 Billion Won in AI Transition Self-Funding Alone"…SMEs Turning to Cheap Chinese Products

- Key Summary: When SMEs pursue AI transformation (AX), the self-funding burden they must bear even after receiving government support has reached an average of 710 million won. According to a survey by the Korea Federation of SMEs obtained by The Seoul Economic Daily, this is the pure corporate share excluding government subsidies, and considering that root-industry firms' annual research and development (R&D) costs are in the 100 million to 300 million won range, the burden is substantial. Consequently, some firms unable to bear the cost are turning to cheaper Chinese AI platforms, and six to seven textile dyeing and processing companies in the Banwol Dyeing Complex in Ansan, Gyeonggi Province, were confirmed to be using a Chinese dye company's AI color-matching service. In this process, concerns have also been raised that companies' longstanding know-how, such as dye mixing ratios and process conditions, could be leaked as training data for Chinese AI.

2. China's All-Out Offensive Armed with AX…Struggling Korean Firms Even Becoming M&A Prey

- Key Summary: According to the Korea Die & Mold Industry Cooperative, imports of Chinese molds swelled 2.6-fold in five years, reaching a record high of $257.24 million last year. The industry explains this is the result of Chinese mold companies, which have expanded AI- and robot-based smart factories based on Chinese government support, raising both price and quality. In contrast, domestic root-industry firms saw sales increase but operating profit stagnate, while R&D investment actually declined 8.9%. Meanwhile, some domestic root-industry firms driven into management difficulties are even being reduced to M&A targets, receiving acquisition proposals from Chinese companies.

3. 72% of SMEs Want to Adopt AI…But Hesitate Over '30% Self-Funding'

- Key Summary: A survey by the Korea Federation of SMEs of cooperatives and firms with experience participating in or reviewing AI transformation (AX) support programs found that 72% responded that the self-funding burden, amounting to 30% of total project costs, is excessive. In addition, more than half of the firms felt burdened by the current standard, which recognizes only half of the self-funding as in-kind, and by the advance-execution structure of project costs. However, 72% of the responding firms said they were reviewing AI adoption, and the most frequently cited necessary policies were direct cost support such as AI vouchers and support for building data infrastructure. Accordingly, the cooperatives that participated in the survey voiced the need for a policy shift toward supporting joint development and demonstration by industry sector.

4. Predicting Credit Risk with Spending Data…Banksalad Develops Alternative Credit Scoring Model

- Key Summary: Banksalad announced research results analyzing the correlation between spending behavior and individual credit risk using MyData, conducted together with Sogang University. An analysis of approximately 200,000 card payment records confirmed that users with steady medical and health-related spending have a lower probability of default, while those with a high proportion of telecommunications spending and convenience store and cafe spending tend to have higher default risk. Based on this research, Banksalad has developed an alternative credit scoring model, 'Banksalad Score,' together with Honest AI and KCB, and is pursuing its application in the financial sector, with the model recording a K-S (Kolmogorov-Smirnov) statistic of 60%. The model is designed to evaluate even thin filers who lack sufficient financial transaction history.

5. "Exceptions Needed for Dual Listing Regulations"…Venture Industry Submits Opinion to FSC

- Key Summary: The venture industry and venture capital (VC) industry submitted an opinion to the Financial Services Commission (FSC) requesting the establishment of exception requirements for venture companies in relation to the government's ban on dual listings. The industry called for the creation of a separate track to review dual KOSDAQ listings for venture companies and an exception to the '3% rule' for shareholder consent. This stems from concerns that, since initial public offerings (IPOs) account for more than 50% of domestic VCs' investment recovery, a decline in the number of IPO companies could also dampen investment in unlisted companies. The FSC and the Korea Exchange plan to gather opinions from various sectors through this month and then vote on the final guideline draft at a regular meeting on the 29th.

6. [Exclusive] Riding Online Fandom…Who.A.U Lands in Vietnam's Offline Market

- Key Summary: E-Land fashion brand Who.A.U opened its first pop-up store at Vincom Mega Mall in Ho Chi Minh City, Vietnam, last month, drawing interest with about 50 people waiting in line on opening day. Who.A.U plans to unveil its first standalone stores in major Vietnamese cities, including Ho Chi Minh City, within the second half of the year. This offline expansion was built on the fandom accumulated through online channels, and Who.A.U's Vietnam sales in the first half of this year increased 231% from the same period last year. Since opening its online mall in 2024, Who.A.U has expanded to channels such as Shopee and TikTok Shop, targeting the local younger generation.