The 'financial paradox': past mistakes become lifelong shackles
Kim Min-jung, a living witness to credit ratings, pioneered the adoption of advanced credit rating systems in South Korea in the 1990s. Why did this established authority in the consulting industry suddenly throw himself into the daunting terrain of fintech? We explore the profound questions raised by the impact of Kim's "alternative credit rating" initiative on our society.
Before the advent of Craypas Solutions, the domestic financial landscape was a bastion of cold records. Young people who tried to make a living diligently but fell into financial difficulties and defaulted on their loans for a few days were sternly shut out of the financial system. It took an average of two years to rebuild a damaged credit score, and in the meantime, young people were forced into the trap of high-interest private loans.
"A system that judges a person's future solely on their past transaction history was like kicking away someone who needed a ladder. I witnessed the paradox, especially for young people with limited financial history, who were treated as 'zero points' before they even started." CEO Kim's voice was filled with the anguish and thirst he felt as the system's designer.
Your 'digital footprint' on your smartphone is your credit.
The solution he proposed is an alternative credit rating model called "STEPS." It focuses on today's "behavioral patterns" rather than yesterday's numbers. "Just as we evaluate a person's gaze and attitude when hiring, evidence of sincerity remains in the digital world," Kim explained. "Minor data like whether they update their smartphone's OS version on time, whether they charge it regularly, and how they manage their Bluetooth devices, when combined with AI, can become powerful indicators of a person's "disposition."
This technology immediately transformed reality. When the youth-only platform was in operation, it achieved a delinquency rate 58% lower than the industry average, demonstrating the technology's effectiveness. The stories of young people who cut back on part-time jobs to pass the civil service exam or overcome crises by covering urgent family surgery expenses were tangible proof of the "warmth of finance" that transcended mere numbers.
CEO Kim wasn't simply talking about welfare, but about the "essence of data business." His insight was that even among low-credit borrowers, who traditional financial institutions dismiss as risky, there are clearly those with a "strong will to repay," and that identifying them through technology is the key to competitiveness.
"We don't simply retrieve telecommunications bill payment history. We apply behavioral science theory to data and patternize it in a second." This expertise transcends borders. In emerging countries with underdeveloped financial infrastructure, such as Mongolia and Cambodia, Craypas' model is serving as an innovative "digital ID card" that increases financial accessibility for the entire nation.
"Technology may be cold, but the goal must be hot."
The reason this 30-year veteran stays up all night every week with his team of 30 or so to hold global technology workshops is simple: to broaden the channels through which finance connects with the world.
Craypas's 2026 year is punctuated by "expansion." This includes assessing the resilience of domestic microfinance, building credit for underserved foreigners, and partnering with global partners to provide a stepping stone for small business owners worldwide.
"Credit ratings are merely tools; their purpose is to believe in people's potential. Lowering costs through technology and demonstrating the value of people—that's the true essence of fintech."
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