3 digital lending companies in South Korea to look out for

By Leandra Monteiro

According to Statista, the South Korea FinTech market has grown significantly due to its strong IT and financial information infrastructure. In addition to the number of domestic FinTech companies, the size of investment is also steadily increasing. In 2019, South Korea’s FinTech adoption rate reached 67% of the digitally active adult population. The government is also supporting the FinTech market by implementing a financial regulatory sandbox and encouraging participation in testbeds.

Here are 3 digital lending companies in South Korea to look out for:

Lendit

Lendit is an online investment-linked financial company established in March 2015. Under the founding vision of ’embedding finance into technology’, it is developing and operating the technology-based P2P finance platform ‘Lendit’.

The P2P finance that Lendit pursues is a technology-based financial platform. Lendit believes that everyone should receive a personalized, appropriate interest rate tailored to their credit. It is promoting reasonable mid-interest rate loans by calculating individualized appropriate interest rates. To this end, it has developed its own credit evaluation model based on big data analysis and machine learning and are continuously upgrading it.

Money Auction

Moneyauction is a Korean p2p lending platform. Moneyauction partnered with telecommunication carrier Korea Telecom and offers a mobile service allowing borrowers to apply for and lenders to bid on loans via their cell phone.

PeopleFund

Founded in 2015, PeopleFund is Korea’s leading data-driven digital lender focused on consumer finance. Its mission is to give financial freedom to all consumers through more affordable loans and better investment opportunities. Leveraging its proprietary, data-driven credit model and eliminating inefficiencies with technology, PeopleFund delivers better loan rates for borrowers while maintaining an industry low loss rate to benefit retail and institutional investors.

PeopleFund is the first digital lender in Korea to surpass $1 billion in loan originations and has provided an innovative way to invest to nearly 400,000 retail investors. It is notably the first FinTech platform to offer loan and investment products directly on KakaoTalk, Korea’s equivalent of WhatsApp. To date, PeopleFund has completed its Series B round of funding with a total of $24 million of equity capital raised.

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