by: Grow VC Group
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Online lending has reached a global dimension, spreading from the US, passing through Europe and reaching Asia. Although they are very different markets, the background which facilitated the emergence of this phenomenon is similar everywhere: many businesses and individuals face difficulties to access credit from banks which have strict requirements, however, thanks to modern technologies and the internet they can now connect directly with national and international investors willing to lend them the needed capital, through dedicated platforms. The same story also took place in South Korea, where there is a growing online lending market.

The Korean P2P lending scene counts about 50 platforms, of which most of them have launched only recently. According to a local industry expert, despite the big number of players,there is room for large-scale growth in Korea because there are currently few lending options for consumers with subpar credit scores. In fact, banks offer low interest rates, but often require excellent credit while private loan companies are less worried about credit scores but have exceptionally high interest rates. P2P lending therefore positions itself somewhere in the middle, offering loans with mid-range interest rates somewhere between 8 and 15 percent.

Nevertheless, not everyone agrees on the need of specific regulations for the sector: some say that the answer is fewer regulations, not more. Whatever the position of the Government, we can be certain that the online investing sector in South Korea is developing quickly and, after equity crowdfunding was regulated, it won’t pass a long time before the Government takes action on it.

Read the whole article on Crowd Valley Blog.

Seoul IFC

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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