P2P lending hits record 1 tln won

SEOUL, July 6 (Yonhap) -- Peer-to-peer lending in South Korea surpassed 1 trillion won (US$870 million) last month, marking a rapid growth as yield-hungry investors funneled more money in the alternative lending scheme, industry data showed Thursday.

According to data compiled by the Korea P2P Financial Association, lending between peers was tallied at 1.16 trillion won at the end of last month.

P2P lending more than doubled from the end of last year. Compared with a month earlier, P2P lending grew by 172.8 billion won.

The average interest rate of such loans stood at 14.68 percent.

P2P lending refers to a new type of loan extension to individuals or businesses through social network services or the Internet, and covers a wide range of services, including loans to startups and self-employed businessmen.
(END)