P2P Company No.1 PeopleFund Surpasses 1 Trillion KRW in Loan Handling Amount... Industry First

Among P2P Companies Focused on Consumer Finance Loans, the First in Korea to Surpass 1 Trillion KRW
Focusing on Technologically Innovative Business Areas and Establishing Data-Driven Credit Evaluation Models

[Asia Economy Reporter Kim Min-young] PeopleFund, the number one peer-to-peer (P2P) finance company, has surpassed 1 trillion KRW in transaction volume. This is the first time a P2P company in Korea has exceeded 1 trillion KRW.

On the 14th, PeopleFund announced that it surpassed 1 trillion KRW in transaction volume just 14 months after reaching 500 billion KRW in 39 months since launching its service in June 2016. It is the first time a P2P company focused on consumer finance loans such as personal credit loans, rather than real estate project financing (PF), has exceeded 1 trillion KRW.

PeopleFund holds the top position in the industry with a loan balance of 275.8 billion KRW. In particular, for personal credit loans, it holds a market share exceeding 59% with a loan balance of 94 billion KRW, securing a strong market position.

Meanwhile, the overall delinquency rate is 3.03%, showing outstanding risk management performance compared to the industry average delinquency rate of 18.71%. While the P2P industry’s delinquency rate has risen sharply due to various incidents recently, PeopleFund’s delinquency rate, which reached 13% at the beginning of last year, has continuously declined every month to the industry’s lowest level of 3%.

Especially for its main product, consumer finance, the delinquency rate for personal credit loans is 0.97%, and for mortgage loans, it is 0.1%, maintaining a rate in the 0% range this year. This is lower than not only the P2P sector but also major financial institutions in the secondary financial market such as savings banks.

Since the second half of 2018, PeopleFund has minimized its real estate PF business and completely reorganized its business portfolio into consumer finance composed of personal credit loans and mortgage loans. The real estate division, which accounted for 50% of new transaction volume in the same year, has decreased to 1% this year, while consumer finance accounts for 96%, making it dominant. Additionally, through a task force (TF) composed of debt collection experts including lawyers, PeopleFund has focused on resolving delinquent loans, resulting in a reduction of delinquent amounts from 20 billion KRW at the end of last year to 8.4 billion KRW, which is about 3% of the loan balance, within just three quarters.

Kim Dae-yoon, CEO of PeopleFund, stated, “Going forward, PeopleFund will continuously focus on building an unparalleled credit evaluation model based on technology and data.” He added, “We will strive to become a leading company in the non-bank financial market beyond the P2P sector by securing stable investment funds through large domestic and international financial institutions.”

This content was produced with the assistance of AI translation services.