FSC to rate borrowers on scale of 1 to 1,000The Financial Services Commission will overhaul its credit rating system to provide more precise measurement of borrowers’ credibility.
The regulator said Tuesday that the new system will rate borrowers on a scale of 1 to 1,000, a departure from the current scale of 1 to 10.
With the change, the FSC expects that some 2.4 million borrowers will see their interest rates go down by 1 percentage point on average.
Since the current system can clump 3 to 10 million people into one group despite varying levels of credibility, critics say some borrowers go through unfair assessments when they apply for a loan.
The new system will be implemented in the second half of this year, the FSC said.
By Park Eun-jee