Asia Insights Intelligence Lending

PeopleFund Report Provides Insight on Tackling Financial Inclusion

PeopleFund, a global investor, has recently released a report on South Korea’s mid-interest lending market, providing key insights into tackling financial inclusion in the region.

The report, titled ‘Korea Mid-Interest Lending Markets Report 2020’ examines the reason behind Korea’s mid-interest loan shortage crisis. Like many parts of the world, traditional credit systems are insufficient in properly assessing the creditworthiness of those who are not prime borrowers with extensive credit history.

Referencing data from independent sources including Korea Investors Service, the Korean Financial Services Commission, and NICE Investors Service, the report highlights the structural inequality that near-prime borrowers face due to conservative lending practices in the country. Despite near-prime borrowers being the second-largest share of the Korean population, mid-interest loans are the least provided in the market, with the majority of loans issued to prime borrowers.

While it remains challenging for traditional financial institutions to increase the supply of mid-interest loans for a variety of reasons, the entry of digital lenders finally presents a real solution to serve near-prime borrowers. The rise of digital lenders, backed by outstanding risk management capabilities specialised for near-prime borrowers, is proving to be a valid solution for the global mid-interest lending markets.

Once digital lending laws in Korea come into full effect and operating license registrations are approved (expected in February this year), digital lenders will be able to significantly expand their services to finally tackle financial inclusion in Korea. Soon-to-be registered digital lenders (including PeopleFund) are expected to provide much needed, innovative lending solutions for near-prime borrowers.

To find out more and read the report in full, click here.


  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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