# South Korean financial market developments > Developing situation record from CLSTR: https://clstr.news/situations/south-korean-financial-market-developments > Updated: 2026-11-02T01:09:40.000Z. Sources: 6. Developments: 2. South Korean financial institutions and markets are undergoing shifts in lending structures and interest rate benchmarks. In late October, the Industrial Bank of Korea and IBK Industrial Bank of Korea launched new loan products based on the Korea Overnight Financing Repo Rate (KOFR) to assist small and medium-sized enterprises (SMEs) with liquidity shortages. This move aligns with Bank of Korea efforts to increase financial market transparency by transitioning toward KOFR and phasing out KORIBOR-based loans. By early November, the P2P lending market showed significant growth, with cumulative transaction volumes for mid-interest credit loans linked to savings banks exceeding 833.4 billion won. This represents a 38.8 percent increase since late July, signaling a market shift from real estate and stock-collateralized loans toward personal credit loans. Amid this growth, fintech platform Toss is preparing to enter the market via its subsidiary, Toss Consumer Preparation Corporation, using proprietary credit evaluation technology. The industry has raised concerns regarding potential conflicts of interest involving Toss, though the company stated it will apply the same standards to its affiliates as it does to competitors. ## Timeline ### 2026-11-02: South Korean P2P lending linked loans exceed 800 billion won Linked loans between P2P lenders and savings banks in South Korea have reached 833.4 billion won, as Toss prepares to enter the mid-interest credit loan market. 2 sources. https://clstr.news/cluster/south-korean-p2p-lending-linked-loans-exceed-800-billion-won ### 2026-10-25: South Korean banks launch KOFR-based loans to support SMEs KDB and IBK are launching 500 billion won each in KOFR-based loans for SMEs to support South Korea's transition to more transparent benchmark interest rates. 6 sources. https://clstr.news/cluster/south-korean-banks-launch-kofr-based-loans-to-support-smes --- Cite as: South Korean financial market developments. CLSTR, https://clstr.news/situations/south-korean-financial-market-developments