[Financial Essay] Major P2P Companies Accelerate Registration for OnTu Business

[Asia Economy Reporter Kim Min-young] Peer-to-peer (P2P) financial companies are accelerating their registration as online investment-linked finance businesses (OnTu businesses) in line with the enforcement of the Online Investment-Linked Finance Business Act (OnTu Act), a new type of financial business.

According to the financial sector on the 30th, Lendit, a P2P company specializing in unsecured loans, is in the final stages of the OnTu business registration application process.

Since June, Lendit has formed a task force (TF) to prepare for OnTu business registration in accordance with Article 5 of the OnTu Act, covering personnel, physical, technical, and business aspects.

Accordingly, preparations for essential registration requirements such as corporate status and capital requirements, professional personnel requirements including compliance officers, various physical facility requirements, and internal control standards are progressing smoothly toward completion. The audit report by an accounting firm, which had to be submitted by the 26th, was already submitted a month ago. Additionally, ahead of the OnTu business registration, Lendit recently underwent a technical credit evaluation conducted by NICE Information Service and received the highest grade, ‘TI-2 grade,’ to objectively verify its technical foundation.

Kim Sung-joon, CEO of Lendit, stated, “With the enforcement of the OnTu Act, we expect the Korean P2P finance industry to take a leap forward in line with global trends. We will complete the OnTu business registration without any setbacks and lead the development of domestic technology-based mid-interest loans.”

Daily Funding, with a cumulative loan amount reaching 549.3 billion KRW, has also started OnTu business registration. Daily Funding said, “We are carefully reviewing the registration requirements for OnTu business registration and plan to submit the registration application as an OnTu business operator within a short period.”

Previously, Daily Funding submitted an external audit report requested by financial authorities. In addition, they newly appointed a certified public accountant as a compliance officer and confirmed that they meet all requirements including 1 billion KRW in capital and a debt ratio within 200%.

8 Percent also launched a TF for the OnTu business registration process. They plan to complete the registration process within this year. Lee Hyo-jin, CEO of 8 Percent, said, “The sound growth of the industry through OnTu business registration can positively change the future of many customers. Going forward, 8 Percent will do its best to discover hidden values in our society and deliver them to financial consumers.”