Three Companies Including YFund Registered for Online Investment Trading... 34 Companies Under Review

7 Companies Registered Completed

[Asia Economy Reporter Park Sun-mi] Three companies, Yfund, Nice Business Platform, and Hanguk Eoum Junggae, have been additionally registered as online investment-linked finance operators with the Financial Services Commission. So far, seven companies have completed registration, and registration reviews for a total of 34 companies are currently underway.

On the 21st, the Financial Services Commission announced that three companies?Yfund, Nice Business Platform, and Hanguk Eoum Junggae?have met the registration requirements under the Act on Online Investment-Linked Finance and User Protection (hereinafter referred to as the ‘OnTu Act’) and have completed registration as online investment-linked finance operators (OnTu operators) 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 must meet registration requirements and register with the Financial Services Commission. Even if the registration validity period remains, companies that have not converted their registration to OnTu operators can only operate P2P business until the 26th of next month.

With the additional registration of these three companies, the total number of registered OnTu operators has increased to seven. The Financial Services Commission is currently conducting registration reviews for a total of 34 companies.

Once OnTu operators subject to the OnTu Act are registered, P2P finance users will be more robustly protected, and this can 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 due to non-registration as OnTu operators after the grace period ends on August 27, so P2P finance investors should exercise caution when using these services.

The Financial Services Commission urged in its P2P finance investor precautions that after the 27th of next month, it is essential to verify whether P2P companies are registered as OnTu operators. This can be confirmed through the Financial Consumer Information Portal Fine’s ‘Regulated Financial Companies Inquiry.’ Additionally, investors should check whether contracts are in place to entrust liquidation tasks (such as debt collection and repayment distribution) 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.

Since the 7th of this month, the maximum interest rate under the Loan Business Act has been lowered to 20% per annum, and since P2P loan interest calculations include fees charged to borrowers, it is necessary to carefully check both loan interest rates and fees.

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