Credit information sharing

Credit information sharing (신용정보의 공유/信用情報 共有) is recommended, or sometimes required in accordance with Article 25 of the Use and Protection of Credit Information Act (the "Credit Information Act", 신용정보의 이용 및 보호에 관한 법률).

There are two ways of exchange and sharing of credit information, i.e., mandatory sharing and voluntary sharing. In Korea, two systems coexists. A public credit information registry for the mandatory sharing of information is provided by the Korean Federation of Banks (KFB, 전국은행연합회), while the voluntary sharing is carried out by credit bureaus (CBs), as in other countries.

The KFB serves as the public credit information registry under the Credit Information Act. As a non-profit organization, the KFB plays a significant role in the system, and private CBs operate as profit-seeking participants.

Public Credit Information Registry
The KFB pools the credit information of individual consumers and corporations from banks and all other financial institutions in Korea. Submission of credit information to the KFB is required by the Credit Information Act. The KFB also collects and manages public credit-related information, including tax delinquency data from government agencies.

The KFB possesses broad data coverage, encompassing every financial institution, and helps these institutions perform effective and efficient credit assessment of their customers and strengthen the monitoring of borrowers.

The KFB also provides relevant statistical information to assist in policy-making to government agencies such as the Ministry of Strategy and Finance (기획재정부), the Financial Services Commission (FSC, 금융위원회) and the Bank of Korea (BOK, 한국은행).

Information Providers and Users
As of December 2011, approximately 4,274 financial institutions and 1,337 other entities, including government agencies and courts, had submitted credit information to the KFB. This figure includes nearly every financial institution operating in Korea, such as 18 domestic banks, 2 credit guarantee funds, 1 housing finance corporation, 1 policy based finance corporation, branches of 16 foreign banks, 49 securities companies, 36 insurance companies, 98 savings banks, 60 credit card·leasing and finance companies, 1,254 agricultural and fisheries cooperatives, 956 credit unions and 1,448 community credit cooperatives, to name a few.

Other than financial institutions, the Korea Export Insurance Corporation, Small Business Corporation, Credit Counseling and Recovery Service, central government agencies, municipal governments, and the Bank of Korea are also providers and users of the KFB credit registry information. Private CBs and other credit information companies have full access to the information as well.

Administration of Credit Information
A financial institution is required to report relevant credit information to the KFB within 10 days of the occurrence of an applicable transaction. The information can be submitted and processed through various channels, including an online network system and a real-time credit information terminal.

In order to ensure the accuracy of the credit information, the KFB conducts investigations of financial institutions’ submissions and levies fines for delays or omissions in accordance with the Credit Information Act.

The KFB has established a nationwide information network system to administer credit information efficiently, and continues to expand its efforts to make information available in a timely and accurate manner.

Identification Information

 * ㆍName
 * ㆍResident registration number
 * ㆍOccupation

Credit Transaction Information

 * ㆍOutstanding loans (dates, amounts, and names of lending institutions, mortgage collateral)
 * ㆍCash advances
 * ㆍOutstanding card loans
 * ㆍGuarantees on repayment (dates, amounts, and names of guarantee institutions)
 * ㆍOpenings and closures of household checking accounts
 * ㆍOpenings and closures of credit card and debit card accounts
 * ㆍDelinquencies on debt
 * ㆍDefaults on credit card debt
 * ㆍSubrogation by third parties
 * ㆍDishonored bills and checks and bankruptcy declaration information
 * ㆍDebt redemption information held by the Credit Counseling and Recovery Service
 * ㆍMisconduct causing disorder in the credit card market, such as defaults on credit card debt
 * ㆍMisconduct causing disorder in credit transactions, such as use of false information

Public Information

 * ㆍDelinquencies on national taxes, local taxes, and customs duties
 * ㆍFailures to honor court repayment orders
 * ㆍExemptions from debt repayment due to court decisions to discharge upon request from debtors
 * ㆍIndividuals in debt recovery process in accordance with the Individual Debtor Recovery Act
 * ㆍDelinquencies on customs duties
 * ㆍDelinquencies on industrial insurance premiums and employment insurance premiums

Identification Information

 * ㆍName of firm
 * ㆍCorporate registration number
 * ㆍBusiness registration number
 * ㆍRepresentative’s name and resident registration number

Credit Transaction Information

 * ㆍOpenings and closures of household and business checking accounts
 * ㆍOpenings and closures of credit card accounts
 * ㆍOutstanding loans and guarantees of repayment (including collateral, credit line information, and maturities)
 * ㆍDelinquencies on debt
 * ㆍImproper use of loans
 * ㆍSubrogation by third parties
 * ㆍFailure to redeem corporate bonds at maturity
 * ㆍMisconduct causing disorder in credit card market, such as defaults on credit card debt
 * ㆍMisconduct causing disorder in credit transactions, such as use of fraudulent information

Public Information

 * ㆍDelinquencies on national taxes, local taxes, and customs duties
 * ㆍFailures to honor court repayment orders
 * ㆍCorporate information on non-performing loans collected from the Korea Assets Management Corporation and Korea Labor Welfare Corporation
 * ㆍCompanies in bankruptcy/liquidation proceedings in accordance with the Bankruptcy Act or in court-mediated composition proceedings in accordance with the Composition Act

Credit Capability Information

 * ㆍCorporate profile (including affiliates and subsidiaries)
 * ㆍGeneral information on business and products
 * ㆍFinancial information, such as financial statements and leverage ratios
 * ㆍNon-financial information such as audit reports
 * ㆍType of business