The Online Investment Association (OIA) expressed its support on September 23 for the Financial Services Commission's announcement on September 22 regarding measures to enhance funding for low to mid-credit borrowers in the online investment sector.
The Financial Services Commission previously stated that it would raise the overall investment limit for individual investors in the online investment sector by 10 million won to 50 million won. Additionally, it plans to introduce a 'superior online investment provider system' aimed at low to mid-credit borrowers in the first quarter of next year, which will expand the investment limits for qualifying online investment firms linked to financial institutions. This initiative aims to increase funding for low to mid-credit borrowers by boosting the capital allocated for personal and small business loans.
The association indicated that it will use this opportunity to expand the supply of mid-interest rate funding for low to mid-credit borrowers while also taking proactive measures to strengthen regulations to enhance the sector's credibility.
According to the association, the balance of personal credit loans in the online investment sector has surged more than tenfold from 43.7 billion won in May of last year, when savings banks began their online investment-linked investments, to 603 billion won in just a year and a half. Approximately 90% of this funding has been provided to borrowers in the bottom 50% of credit scores.
Hong Jae-moon, chairman of the Online Investment Association, stated, "Over the past year and a half, the online investment sector has demonstrated that it can be a driver of innovation and inclusion in financing for low to mid-credit borrowers. We will respond to the trust placed in us by the authorities with mid-interest rates around 8% and a credit ladder leading to banks."
* This article has been translated by AI.
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