On-to-Up Grace Period Nears End... Over 30 Companies Expected to Register as Tugas

[Asia Economy Reporter Sung Ki-ho] With the grace period for the Online Investment-Linked Finance Act (OnTu Act) set to end in ten days, attention is focused on whether several peer-to-peer (P2P) finance companies can register additionally. The industry expects about 30 companies to be newly registered as OnTu operators. According to this outlook, including the seven companies that have already completed registration, a total of around 40 OnTu companies will be able to operate 'P2P finance businesses.'

According to the financial industry on the 16th, the Financial Services Commission will decide on the registration of P2P companies currently under review by the Financial Supervisory Service as OnTu operators at the regular meeting on the 25th. The legal registration deadline for existing P2P companies is the 26th of this month. P2P companies that do not register as OnTu operators by then will not be able to conduct new business.

So far, out of 85 P2P-linked lending companies, 40 are known to have applied for OnTu operator registration. Among them, seven companies have passed the review, and the final review is underway for the remaining companies. Ultimately, it is estimated that around 40 P2P companies will survive through formal registration.

The problem lies with 12 companies that are operating without even applying for registration. The total number of investors in these companies is about 3,000, with investment balances estimated at around 40 to 45 billion KRW.

P2P finance companies that completed the formal registration process early are accelerating the sale of investment products and loan operations under the umbrella of 'formal inclusion in the regulated financial sector.'

On June 10, three companies?Lendit, 8 Percent, and PeopleFund?were registered as 'Joint No. 1,' and a month later, on July 13, Winkstone Partners completed registration as 'No. 2.'

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