Financial Services Commission Registers Two Crowdfunding Operators Including Terafintech, Totaling 44 Companies

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[Asia Economy Reporter Song Hwajeong] The Financial Services Commission announced on the 13th that two companies, TerafinTech and HiFunding, have met the registration requirements under the "Online Investment-Linked Finance Business and User Protection Act" (hereinafter referred to as the OnTu Act) and have been registered as online investment-linked finance businesses. As a result, the total number of companies registered as online investment-linked finance businesses has increased to 44.

The Financial Services Commission plans to promptly finalize the review results for companies that have submitted registration applications and will continue to implement measures to prevent user damage for companies that may be at risk of closure. A Financial Services Commission official stated, "In addition to the 44 companies registered so far, we are currently reviewing registration applications from existing companies and newly established companies seeking to enter the OnTu business. Existing companies that have not yet registered must suspend new business activities until registration, but user protection tasks such as recovering and repaying funds to existing investors will be maintained. Once registration requirements are met and the company is registered as an OnTu business, new business activities can resume."

Additionally, the Financial Services Commission urged P2P finance users to be aware that principal guarantees are not provided and to avoid investing in companies that excessively offer rewards or handle excessive loans to the same borrower.

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