Foreign Venture Capital News

After obtaining the approval of FSC, it is striving for the market share of personal credit in Korea.

According to Techcrunch, on February 1 1, South Korea's P2P lending platform announced the completion of the $63.4 million Series C financing led by BainCapital and participated by GoldmanSachs. Since the establishment of 20 15, the total amount of funds raised is about 83.6 million US dollars.

The picture is from official website.

In August 2020, South Korea passed the world's first law specifically for digital lending to regulate market lenders and protect P2P consumers. The new law allows licensed P2P loan startups to operate as authorized financial institutions, provide loans to customers, raise funds from international and domestic institutions, and provide loan services. The 2020 annual report shows that the number of lending institutions in the Korean market has decreased from 237 in August 2020 to 102 in May 2026.

This financing activity was held only five months after it was approved by the Korea Financial Services Commission and registered with the government. Among the 4 1 applicants at the beginning of June this year, only three Korean P2P lending platforms have obtained the permission of FSC and can legally operate their business.

CEO and founder JoeyKim said, "Our mission is to grow into the largest participant in the Korean non-bank loan market and provide better loan options for ordinary Koreans. Talking about the difference with competitors, Kim said that the default rate is the lowest in the industry, and it is managed by its own credit scoring system and has strong risk management capabilities. By the end of 20021,10, more than $65,438 billion in loans had been managed, with a default rate of 2.06%. In addition, based on about 480,000 loan customers registered on its platform, our credit scoring system optimizes medium-interest loans. It has established a credit scoring system 4.0 for borrowers close to high quality, providing borrowers with more affordable loans with medium interest rates, thus helping borrowers to refinance.

The picture is from official website.

The target is the traditional personal credit loan market in Korea. Kim said that as of 10, the company's market share in the P2P personal loan market is about 57%, and it is expected to achieve profitability in 2022. The new round of financing will also be used to recruit AI engineers, optimize the credit scoring algorithm and strengthen the credit scoring system.

TimChae, managing partner of 500Global, said: "Although the leading online lending institutions in the United States have grown to billions of dollars through lending platforms such as Upstart and SoFi, online lending in South Korea has just begun. We firmly believe that with its good performance record, it will accelerate the innovation in the field of non-bank loans in Korea and become the ultimate winner.