SOUTH KOREA EASES P2P INVESTMENT LIMITS, BOOSTS SUPPORT FOR MEDIUM- TO LOW-CREDIT BORROWERS The self-investment limit has been raised to 40%, and the individual investor cap has been increased to 50 million KRW. On September 22, the Financial Services Commission of South Korea announced a package of measures to relax investment limits in the online peer-to-peer (P2P) finance sector and expand collaboration with financial institutions, aiming to increase capital flow to medium- to low-credit customers. According to the agency, these measures were introduced following consultations with the P2P industry, as regulators seek to encourage capital inflows into the medium- to low-credit borrower segment. Specifically, for companies demonstrating strong lending performance to this customer group and possessing robust credit scoring capabilities, the self-investment limit will be raised from 20% to 40%. The limit for investment linked with financial institutions will also increase from 40% to 50%. For individual investors, the investment cap has been adjusted from 40 million KRW to 50 million KRW. Regulators are also expanding financial institutions’ participation in linked investment activities and broadening the scope of eligible investments to include unsecured loans to individual business owners. Additional measures include improving loan extension mechanisms and enhancing connectivity with specialized credit scoring models tailored for small businesses. To protect investors, regulators will strengthen loss ratio disclosures, tighten requirements for independent verification of disclosed information, and refine procedures for withdrawal and remediation of underperforming P2P platforms. The Financial Services Commission stated it will review and evaluate innovative financial service applications and prepare draft legislative amendments, targeting implementation in the first quarter of next year. By Ji-young Lee