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Regulator to bolster disclosure rules for P2P lending firms

All Headlines 12:00 December 11, 2018

SEOUL, Dec. 11 (Yonhap) -- The financial regulator said Tuesday it will revise a guideline that strengthens disclosure rules for peer-to-peer (P2P) lending firms, in a move to make the P2P lending market more transparent and cleaner.

P2P lending refers to a new type of loan extended to individuals or businesses through social network services and the Internet, covering a wide range of services, including loans to startups and self-employed businessmen.

Under the revised guideline, P2P lending firms will be required to publicly disclose most of their transactions and financial information, the Financial Services Commission (FSC) said in a statement.

Regulator to bolster disclosure rules for P2P lending firms - 1

Also, P2P lending firms will be required to clarify their delinquency rate on loans, the FSC said.

To tackle abusive and deceptive P2P lending practices, the FSC said it will step up monitoring of P2P lending firms.

Accumulated P2P loans in South Korea were estimated at some 4.3 trillion won (US$3.81 billion) as of the end of September, with property-related loans accounting for about 60 percent of the total lending, according to the FSC data.

The number of P2P loan-extending firms stood at 205 in September, the data showed.

P2P lending firms are largely unregulated in South Korea. With two related bills languishing in the National Assembly, financial authorities have been struggling to cope with market irregularities.

kdh@yna.co.kr
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