• Journal of Contemporary Eastern Asia
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• v.20 no.1
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• pp.102-119
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• 2021

Social credit rating in China (SCRC) has been criticized as "dystopian" and "Orwellian," an attempt by the Communist Party to hold onto power by exerting ever greater control over its citizens. To explain such measures, value differences are often invoked, that Chinese value stability and cooperation over privacy and freedom. However, these explanations are oversimplifications that result in ethical impasses. This article argues social credit rating should be understood in terms of the commonly human problem of large-scale cooperation. To do so, this paper relies on a cultural evolutionary framework and is an exercise in interpretive pros hen ethical pluralism, attempting to understand how apparently irresolvable cultural differences stem from common human concerns. Wholesale condemnation of SCRC fails to acknowledge the serious, intractable nature of problems resulting from a lack of trust in China. They take for granted the existence of institutions ensuring largescale, anonymous cooperation characteristic of - but somewhat unique to - Western Educated Industrialized Rich and Democratic (WEIRD) cultures. Because of its history and rapid development, China lacks the institutions necessary to ensure such cooperation, and because of anti-social punishment, social credit rating might be one of the few ways to ensure cooperation at this scale. The point is not to defend social credit rating in general, but to raise the possibility of its defense in China and show one way this would be done.

• Journal of the Korea Convergence Society
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• v.9 no.1
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• pp.1-8
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• 2018

This study analyzed annual final sample data from 159 companies based on firms selected as economic justice companies by Economic Justice Institute in Citizens' Coalition for Economic Justice in South Korea according to interest variables from 2005 until 2011. Analyzed results are as follows. First, higher scores in soundness and corporate social activities among CSR items suggested that corporate credit rating upgraded. This indicates that credit rating institutions give a good evaluation on their social activities and reflect them in credit rating assessment. However, environmental protection satisfaction and corporate credit rating showed the opposite results. Second, high objectivity and contribution to the economic development as well as supervision by giant auditors had substantial effects on higher corporate credit rating. In contrast, high soundness and supervision by giant auditors reduced corporate credit rating. Based on this outcome, it is estimated that there is a discriminatory response among CSR activities in terms of credit rating evaluation conducted by credit rating institution.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.15 no.10
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• pp.3627-3641
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• 2021

Fintech, which stands for financial technology, is growing fast globally since the economic crisis hit the United States in 2008. Fintech companies are striving to secure a competitive advantage over existing financial services by providing efficient financial services utilizing the latest technologies. Fintech companies can be classified into several areas according to their business solutions. Among the Fintech sector, peer-to-peer (P2P) lending companies are leading the domestic Fintech industry. P2P lending is a method of lending funds directly to individuals or businesses without an official financial institution participating as an intermediary in the transaction. The rapid growth of P2P lending companies has now reached a level that threatens secondary financial markets. However, as the growth rate increases, so does the potential risk factor. In addition to government laws to protect and regulate P2P lending, further measures to reduce the risk of P2P lending accidents have yet to keep up with the pace of market growth. Since most P2P lenders do not implement their own credit rating system, they rely on personal credit scores provided by credit rating agencies such as the NICE credit information service in Korea. However, it is hard for P2P lending companies to figure out the intentional loan default of the borrower since most borrowers' credit scores are not excellent. This study analyzed the voices of telephone conversation between the loan consultant and the borrower in order to verify if it is applicable to determine the personal credit score. Experimental results show that the change in pitch frequency and change in voice pitch frequency can be reliably identified, and this difference can be used to predict the loan defaults or use it to determine the underlying default risk. It has also been shown that parameters extracted from sample voice data can be used as a determinant for classifying the level of personal credit ratings.

• Journal of the Korean Home Economics Association
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• v.44 no.3 s.217
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• pp.1-11
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• 2006

Although the personal credit rating has become more important than ever before in our era, a significant number of social problems have occurred due to the rising number of individuals and households with low credit ratings. The main objectives of this research are to determine effective policies of social remedies through an investigation of recognition, expectation, and utilization levels of relevant public policies available to assist individuals with low credit ratings. The sample population was taken from the credit defaulters who had visited the Credit Recovery Commission. The research was undertaken from April 28 to May 4, 2004. This study focused on the related variables concerning the degree of utilization of remedial public policies. The results showed that females, less educated individuals, and those with higher levels of expectation and recognition were more likely to utilize remedial policies. Based on the research, conclusions regarding the usage of public remedial policies for credit defaulters are as stated below. Education for households should be conducted in order to increase the expectation and recognition levels of relevant policies.

• Journal of Digital Convergence
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• v.13 no.2
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• pp.105-113
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• 2015

If the watchdog role of good corporate governance, corporate executives and reduce agency costs and information asymmetries. Corporate governance score higher because enterprise internal control systems and financial reporting system is well equipped with the company management is enabled and corporate performance is higher because the high financial credit rating. Under these assumptions and hypotheses set up this study corporate governance (CGI) has been studied demonstrated how the financial impact on the credit rating (CFR). Findings,

relevant corporate governance (CGI) and financial credit rating was found to significantly affect the positive (+), Regression coefficient code is expected code of positive (+), the value

indicated by the value of all positive. The results of corporate governance (CGI) has showed excellent results, such as the more predictable will increase the credit score financial rating. The results of this study will have more CGI-credit financial rating the greater good. This study might be expected to provide a useful guide that corporate social responsibility, the company with a good governance and oversight systems enable to to get a higher credit rating in practice and research.

• Journal of Industrial Convergence
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• v.21 no.1
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• pp.111-122
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• 2023

The purpose of this study is to verify the factors affecting survival time by estimating survival rate and survival time using non-financial information of social enterprises using credit guarantee in credit guarantee institutions, and provide information to stakeholders to improve survival rate and employ to contribute to maintaining and expanding the As a research method, survival analysis was performed using a non-parametric analysis method, Kaplan-Meier Analysis. As a sample, 621 companies (577 normal companies, 44 insolvent companies) established between 2009 and 2018 were selected as the target companies. As a result of examining the factors affecting survival time by classifying social enterprise representative information and corporate information, representative credit rating, representative home ownership, credit transaction period, and corporate credit rating were derived as significant variables affecting survival time. In the future, financial institutions will be able to induce corporate soundness by reflecting factors that affect survival when examining loans for social enterprises, contributing to job retention and reduction of social costs. Supporting organizations such as the government and private organizations will be able to use it in various ways, such as policy establishment and education and training for the growth and sustainability of social enterprises. With this study as an opportunity, I hope that research will continue with more interest in the factors influencing social enterprise performance as well as corporate insolvency.

• Journal of Industrial Convergence
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• v.21 no.11
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• pp.13-27
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• 2023

This study aims to contribute to the reduction of the failure rate and social costs resulting from business failures by analyzing factors that affect the insolvency of social enterprises, as the role of social enterprises is increasing in our economy. The data used in this study were classified as normal and insolvent companies among social enterprises (including prospective social enterprises) that were established between 2009 and 2018 and received credit guarantees from credit guarantee institutions as of the end of June 2022. Among the collected data, 439 social enterprises with available financial information were targeted; 406 (92.5%) were normal enterprises, and 33 (7.5%) were insolvent enterprises. Through a literature review, eight non-financial factors commonly used for insolvency prediction were selected. The cross-analysis results showed that four of these factors were significant. Logistic regression analysis revealed that two variables, including corporate credit rating and the personal credit rating of the representative, were significant. Financial factors such as debt ratio, sales operating profit rate, and total asset turnover were used as control variables. The empirical analysis confirmed that the two independent variables maintained their influence even after controlling for financial factors. Given that government-led support and development policies have limitations, there is a need to shift policy direction so that various companies aspiring to create social value can enter the social enterprise sector through private and regional initiatives. This would enable the social economy to create an environment where local residents can collaborate to realize social value, and the government should actively support this.

• The Journal of the Convergence on Culture Technology
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• v.10 no.3
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• pp.467-474
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• 2024

This study analyses customer data from a US online lending platform to empirically document the discriminatory treatment that low- and middle-income borrowers face in financial markets. Researchers are using financial data from nearly 2.93 million loans between 2007~2020 of the Lending Club on the open-source Kaggle platform. We find that thin-filers borrowers, especially those with lower credit scores, receive loans at higher interest rates. This discriminatory treatment undermines financial inclusion and has the potential to increase social inequality. The significance of this research is that it sheds substantial light on the problem of inequality in financial markets and, based on the findings, suggests concrete measures to ensure equitable access to finance for all customers and enhance sustainable financial inclusion. In doing so, we propose a shift towards enhancing the social responsibility of institutions.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.77-90
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• 2023

This study aims to investigate the potential of alternative credit assessment through Social Networking Sites (SNS) as a complementary tool to conventional loan review processes. It seeks to discern the impact of SNS usage characteristics and loan product attributes on credit loan repayment. To achieve this objective, we conducted a binomial logistic regression analysis examining the influence of SNS usage patterns, loan characteristics, and personal attributes on credit loan conditions, utilizing data from Company A's credit loan program, which integrates SNS data into its actual loan review processes. Our findings reveal several noteworthy insights. Firstly, with respect to profile photos that reflect users' personalities and individual characteristics, individuals who choose to upload photos directly connected to their personal lives, such as images of themselves, their private circles (e.g., family and friends), and photos depicting social activities like hobbies, which tend to be favored by individuals with extroverted tendencies, as well as character and humor-themed photos, which are typically favored by individuals with conscientious traits, demonstrate a higher propensity for diligently repaying credit loans. Conversely, the utilization of photos like landscapes or images concealing one's identity did not exhibit a statistically significant causal relationship with loan repayment. Furthermore, a positive correlation was observed between the extent of SNS usage and the likelihood of loan repayment. However, the level of SNS interaction did not exert a significant effect on the probability of loan repayment. This observation may be attributed to the passive nature of the interaction variable, which primarily involves expressing sympathy for other users' comments rather than generating original content. The study also unveiled the statistical significance of loan duration and the number of loans, representing key characteristics of loan portfolios, in influencing credit loan repayment. This underscores the importance of considering loan duration and the quantity of loans as crucial determinants in the design of microcredit products. Among the personal characteristic variables examined, only gender emerged as a significant factor. This implies that the loan program scrutinized in this analysis does not exhibit substantial discrimination based on age and credit scores, as its customer base predominantly consists of individuals in their twenties and thirties with low credit scores, who encounter challenges in securing loans from traditional financial institutions. This research stands out from prior studies by empirically exploring the relationship between SNS usage and credit loan repayment while incorporating variables not typically addressed in existing credit rating research, such as profile pictures. It underscores the significance of harnessing subjective, unstructured information from SNS for loan screening, offering the potential to mitigate the financial disadvantages faced by borrowers with low credit scores or those ensnared in short-term liquidity constraints due to limited credit history a group often referred to as "thin filers." By utilizing such information, these individuals can potentially reduce their credit costs, whereas they are supposed to accrue a more substantial financial history through credit transactions under conventional credit assessment system.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.1
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• pp.139-149
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• 2019

The purpose of this study is to contribute to the minimization of the social cost due to the insolvency by improving the success rate of the startups by providing useful information to the founders and the start-up support institutions through analysis of non-financial information affecting the failure of the startups. This study is aimed at entrepreneurs. The entrepreneurs that are defined by the credit guarantee institutions generally refer to entrepreneurs within 5 years of establishment. The data used in the study are sampled from the companies that were supported by the start-up guarantee from January 2014 to December 2013 as the end of December 2017. The total number of sampled firms is 2,826, 2,267 companies (80.2%), and 559 non-performing companies (19.8%). The non-financial information of the entrepreneur was divided into the entrepreneur characteristics information, the entrepreneur characteristics information, the entrepreneur asset information and the entrepreneur 's credit information, and cross-tabulations and logistic regression analysis were conducted. As a result of cross-tabulations, univariate analysis showed that personal credit rating, presence in the industry, presence of residential housing, presence of employees, and presence of financial statements were selected as significant variables. As a result of the logistic regression analysis, three variables such as personal credit rating, occupation in the industry, and presence of residential house were found to be important factors affecting the failure of founding companies. This result shows the importance of entrepreneur 's personal credibility and experience and entrepreneur' s assets in business management. The start-up support institutions should reflect these results in the entrepreneur 's credit evaluation system, and the entrepreneurs need training on the importance of the personal credit and the management plan in the entrepreneurial education. The results of this analysis will contribute to the minimization of the incapacity of startups by providing useful non-financial information to founders and start-up support organizations.