Institutional P2P Finance Companies Emerge... Lendit, 8Percent, PeopleFund Among 3 Firms

Financial Services Commission to Expedite Review of Remaining 38 Companies

[Asia Economy Reporter Kim Jin-ho] The first regulated online investment-linked finance (P2P) company has emerged following the enforcement of the Online Investment-Linked Finance Act (OnTu Act).

On the 10th, the Financial Services Commission announced that three companies?8Percent, Lendit, and PeopleFund Company?have met the registration requirements under the OnTu Act and have been registered as the first P2P finance operators.

The Financial Services Commission judged that the three companies satisfied six major registration requirements: ▲capital adequacy ▲personnel and physical facilities ▲business plan and internal control systems ▲executives ▲major shareholders ▲applicants.

A Financial Services Commission official explained, "With the first registration of P2P operators subject to the OnTu Act, P2P finance users are expected to receive stronger protection," adding, "This is also expected to have a positive impact on enhancing the credibility and sound development of the P2P finance industry in the future."

Besides the three registered companies, the financial authorities plan to promptly finalize the review results for 38 companies that have currently submitted registration applications.

Under the OnTu Act, which took effect on August 27 last year, P2P finance has been incorporated into the regulated sector. Only companies registered with the financial authorities under the OnTu Act can operate P2P finance businesses. Existing companies that fail to complete registration by August 26 will be prohibited from conducting new business until registration is completed.