SmartFunding and FirstOnline Newly Registered as Online Investment Platforms... Total of 38 Companies

[Asia Economy Reporter Kwangho Lee] The Financial Services Commission announced on the 12th that two P2P (peer-to-peer) companies, Smart Fintech and First Online Investment Finance, have registered under the Act on Online Investment-Linked Finance Business and User Protection.

As a result, the total number of P2P companies registered as online investment-linked finance businesses has increased to 38.

P2P finance refers to a service that connects borrowers and investors through an online platform and charges a commission.

With the enforcement of the Online Investment-Linked Finance Act, a legal basis for P2P finance businesses has been established, and companies must meet certain requirements and register with the financial authorities to operate.

A Financial Services Commission official stated, "We are currently reviewing registration applications from existing companies that have submitted additional applications and newly established companies wishing to enter the online investment-linked finance business," adding, "We will promptly finalize the results after reviewing whether the registration requirements are met."

Existing companies that have not yet registered for the online investment-linked finance business must suspend new operations until registration is completed, maintaining only user protection tasks such as recovering and repaying funds to existing investors.

Additionally, the Financial Services Commission provided precautions for P2P users. Investors should keep in mind that due to the nature of P2P loans, principal is not guaranteed, and recovering invested funds may be difficult. Therefore, companies that offer loss compensation or excessively high returns to investors may be involved in incomplete sales or handling of poor-quality loans, so caution is advised.

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