Credit Bureau Cambodia ( CBC ) and Korea Credit Bureau ( KCB ) have launched a cross-border service for members to access credit data to improve lending decisions.

“The service ensures data accuracy, consistency and alignment with credit report sharing practices of both Cambodia and South Korea,” CBC says in a April 25 statement.

As well, the service, CBC notes, is expected to improve financial access for more than 50,000 Cambodians working in South Korea who will be able to access financial services using their credit histories from home. It will help Cambodians in Korea, shares Oeur Sothearoath, CBC’s chief executive, “leverage their credit histories internationally for greater financial opportunities”.

Hwang Jong Sup, KCB’s chief executive, adds that the initiative “paves the way for broader regional cooperation.”

The launch follows the signing of a memorandum of understanding between the two bureaus during Cambodian Prime Minister Hun Manet’s visit to South Korea in May of last year.

Jeonbuk Bank early adopter

South Korea’s Jeonbuk Bank – the parent of Phnom Penh Commercial Bank – joined the initiative last year as an early adopter to improve access to credit for Cambodians in Korea.

Founded in 2012, CBC is Cambodia’s leading provider of financial information, analytical solutions and credit-reporting services with 197 members.

KCB, South Korea’s leading credit bureau, was founded by 18 financial institutions in 2005 after a rapid expansion in consumer credit led to a surge in delinquencies and defaults.

South Korean financial institutions have a strong presence in Cambodia and the company that runs the local stock market, the Cambodia Securities Exchange, is 45%-owned by the Korea Exchange with the finance ministry holding the remaining 55%.