Credit Bureau Cambodia (CBC) has signed a memorandum of understanding (MoU) with Korea Credit Bureau (KCB) and Jeonbuk (JB) Bank to seek mutual collaboration in establishing cross-border credit report sharing between Cambodia and South Korea.

The aim is to enable the cross-border sharing of credit reports for Cambodians living in South Korea.

More than 50,000 Cambodians are estimated to be living in Korea, while over 10,000 Korean individuals reside in Cambodia. The collaboration will eliminate the lack of credit history among them, according to a press release. 

“The lack of transparency and bilateral sharing of an individual’s previous credit history creates potential obstacles for credit applications when relocating to live or work in another country. Credit history information plays a very important part in a lender’s loan application assessment process,” it said.

“CBC and KCB will make efforts to develop a cross-border credit report sharing initiative to fill this information gap,” it added.

The MoU was signed during the May 16 Cambodia-Korea Business Forum in Seoul, in the presence of Prime Minister Hun Manet and South Korean Minister for Trade, Industry and Energy Ahn Duk-geun.

Korea is home to the second-largest number of Cambodian migrant workers, after Thailand.

“Cambodia and Korea already have excellent bilateral relations in terms of trade, investment and financial sector cooperation,” said Rath Sovannorak, deputy governor of the National Bank of Cambodia and chairman of Credit Bureau Cambodia.

“We are happy to bring the two countries under this additional framework of cross-border credit report sharing. It will directly benefit a large number of Cambodians overseas by supporting their access to credit and improving their quality of life,” he added.