Korean fintech uses AI to curb default rates in Indonesia

Technology may not solve every social issue. But when it comes to assessing borrowers — those who have the will and ability to repay but struggle to secure loans due to their low credits — it has shown notable success.

At the forefront is PFC Technologies (PFCT). Launched in 2015 as a peer-to-peer (P2P) lending platform, the company took a major leap forward nearly a decade later, with Lee Soo-hwan stepping in as CEO in August 2023.

Under Lee’s leadership, the company’s competitive advantage now stems from its AI-powered credit evaluation model, AIRPACK. This B2B solution assists individuals with middle to low credit scores in avoiding excessive debt and allows financial institutions to set interest rates that mitigate delinquency risks.

Starting this year, PFCT partnered with the Indonesian subsidiaries of OK Financial Group and KB Kookmin Bank. Its aim is to lower the proportion of high-risk debtors in Indonesia by 2-3 percent.

Marking the one-year anniversary of his appointment, Lee sat down with The Korea Times to discuss the company’s overseas expansions and future strategies.

Below are excerpts from the interview with Lee. They have been edited for clarity and readability.