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Recently Korean banks are endeavoring to find ways of effective management for credit evaluation, thus to maintain the soundness of their capital. Korean conglomerate companies and medium & small companies were bankrupt in chain, and as a result the weak credit was increased. Therefore, Korean banks came to focus on reinforcing the measurements of examining and managing the credits of the conglomerate companies and medium & small companies. In comparison with the banks in advanced countries, Korean banks show such weaknesses as they do not have effective distinction between offices of managing credit, and what`s worse, they do not have well-established measures against the credit in danger. Accordingly, Korean banks should work off the ineffective decision-making practices and the existing loan practices based on security. They need to develop new management systems of emphasizing the credit management potentials. In addition to developing new credit evaluation processes for effective credit management, they will have to adopt the credit management systems from advanced countries for measuring the credit of the business companies. They will also have to develop data base for the loan customers and renovate the data for the bankruptcy ratio. They will have to further consider establishing relevant politics for loan interest rate, maximum loan amount, loan portfolio, and others against credit in danger. Korean banks need basically re-engineering the loan processes and the existing decision-making practices.