Winkstone On-to-Up Registration... 4 Companies Registered, 37 Under Review

Ongoing Registration Review for 37 Online Lending Service Providers

[Asia Economy Reporter Park Sun-mi] Winkstone Partners has been additionally registered as an online investment-linked finance business operator with the Financial Services Commission. So far, four companies have completed registration, and registration reviews for a total of 37 companies are currently underway.

On the 13th, the Financial Services Commission announced that Winkstone Partners has met the registration requirements under the Act on Online Investment-Linked Finance Business and User Protection (hereinafter referred to as the ‘OnTu Act’) and has completed registration as an online investment-linked finance business operator (OnTu operator) with the Financial Services Commission. Since the enforcement of the OnTu Act on August 27 last year, companies wishing to engage in online investment-linked finance business must meet registration requirements and register with the Financial Services Commission. Even if the registration validity period remains, if the company has not converted and registered as an OnTu operator, P2P business will only be allowed until the 26th of next month.

The Financial Services Commission has already completed registration for three companies?8 Percent, Rendit, and PeopleFund?and with the addition of Winkstone Partners, the total number of registered OnTu operators has increased to four. The Financial Services Commission is currently reviewing registrations for a total of 37 companies.

Once OnTu operators subject to the OnTu Act are registered, P2P finance users will be more thoroughly protected, and this will contribute to enhancing the credibility and sound development of the P2P finance industry in the future. However, even companies handling linked loans through P2P-linked lending operators face the possibility of closure if they fail to register as OnTu operators after the grace period ends on August 27. Therefore, P2P finance investors should exercise caution when using these services.

The Financial Services Commission urged in its P2P finance investor advisory that after the 27th of next month, it is essential to verify whether P2P companies are registered as OnTu operators. This can be checked on the Financial Consumer Information Portal, Fine, under ‘Regulated Financial Company Inquiry.’ Additionally, investors should verify whether contracts are in place to entrust liquidation tasks (such as debt collection and distribution of repayment funds) to credible external institutions in case the P2P company ceases operations.

P2P loans are high-risk products where losses due to borrower default are borne by investors, and investment recovery is not guaranteed. Companies offering investor loss compensation, excessive rewards, or high returns are more likely to engage in mis-selling and handle non-performing loans, so caution is necessary. Investors should also be careful when investing in high-risk asset-backed products that are difficult to understand in terms of structure and risk and have a high possibility of default.

Furthermore, from the 7th of this month, the maximum interest rate under the Loan Business Act has been lowered to 20% per annum, and since fees charged to borrowers are included in the calculation of P2P loan interest, it is important to carefully check both loan interest rates and fees.

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