South Korean P2P lending linked loans exceed 800 billion won

Cumulative transaction volume for mid-interest credit loans linked between online investment-linked financial businesses (P2P lenders) and savings banks has surpassed 833.4 billion won. According to the Online Investment-linked Financial Industry Association, this represents a 38.8 percent increase from 600.4 billion won in late July.

The market is shifting from real estate project financing and stock-collateralized loans toward personal mid-interest credit loans. While the industry is growing, existing players are focused on the availability of funding from savings banks. Currently, a single financial institution is limited to investing a maximum of 40 percent of individual linked loan recruitment amounts.

Fintech platform Toss is preparing to enter the market through its subsidiary, Toss Consumer Preparation Corporation. Toss aims to use its proprietary credit evaluation technology to provide loans to borrowers who may not receive sufficient credit recognition from traditional financial sectors. However, the industry has raised concerns regarding potential conflicts of interest, specifically whether Toss might prioritize its own products on its loan comparison platform. Toss has stated it will apply the same standards to its affiliates as it does to competitors.