The alternative lending in this region is expected to grow by 28.0% on an annual basis to reach US$6.63 billion in 2024.
Medium to long term growth story of alternative lending in South Korea remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.3% during 2024-2028. The alternative lending market in the country will increase from US$5.18 billion in 2023 to reach US$13.43 billion by 2028.
South Korea's alternative lending sector is thriving, driven by rising household debt and tighter bank lending standards. Innovations from major players like Kakao Bank and Toss Bank and advancements in peer-to-peer platforms are enhancing accessibility and efficiency. Strategic partnerships and supportive regulations further boost growth while ensuring consumer protection, positioning the sector for continued evolution and expansion.
It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in South Korea. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Medium to long term growth story of alternative lending in South Korea remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.3% during 2024-2028. The alternative lending market in the country will increase from US$5.18 billion in 2023 to reach US$13.43 billion by 2028.
South Korea's alternative lending sector is thriving, driven by rising household debt and tighter bank lending standards. Innovations from major players like Kakao Bank and Toss Bank and advancements in peer-to-peer platforms are enhancing accessibility and efficiency. Strategic partnerships and supportive regulations further boost growth while ensuring consumer protection, positioning the sector for continued evolution and expansion.
Growth in the Alternative Lending Sector
South Korea's alternative lending sector has grown significantly, driven by increasing household debt and demand for corporate loans. Traditional banks are tightening lending criteria due to higher interest rates, making alternative options like peer-to-peer lending and fintech solutions more appealing to consumers and small businesses seeking financing. Looking ahead, the sector is expected to continue evolving, with a focus on innovative lending models and enhanced digital platforms to meet the market's diverse borrowing needs.Key Developments in the Alternative Lending Sector
Product Launches and Innovations
- Kakao Bank Introduces New Loan Products - Kakao Bank has expanded its offerings by launching new loan products aimed at providing more accessible credit options for consumers, particularly targeting younger borrowers and those with limited credit history. This initiative reflects the bank's commitment to enhancing financial inclusion and catering to the market's evolving needs.
- Toss Bank Expands Personal Loan Services - Toss Bank has introduced new personal loan services with competitive interest rates and a streamlined application process, aiming to attract borrowers who may find traditional banking options less accessible and increase its market share in alternative lending.
- Peer-to-Peer Lending Platforms Innovate - Various peer-to-peer lending platforms in South Korea have rolled out innovative features, such as improved risk assessment algorithms and enhanced user interfaces, to attract both borrowers and investors. These advancements foster trust and efficiency in lending, making alternative lending more appealing to a broader audience.
Regulatory Changes
- Special Act on Financial Innovation Support - Under this act, businesses that meet specific criteria can apply for pilot operations of financial services not permitted under existing laws through a regulatory sandbox system. This initiative allows fintech companies to test innovative lending solutions in a controlled environment, fostering growth and adaptation in the alternative lending landscape.
- Act on Online Investment-Linked Finance and User Protection - This legislation regulates peer-to-peer (P2P) lending by requiring operators to register with the Financial Services Commission (FSC) and maintain a minimum capital requirement. The act aims to protect users while promoting a structured environment for online lending platforms, ensuring transparency and accountability in the sector.
- Financial Consumer Protection Act - The act governs online loan brokerage services, requiring FSC registration and adherence to consumer protection standards. It emphasizes protecting consumer interests in the evolving lending market, ensuring fair treatment and transparent loan information.
It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in South Korea. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in South Korea through 125 tables and 150 charts. Below is a summary of key market segments.South Korea Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
South Korea Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
South Korea Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
South Korea Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
South Korea Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
South Korea Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
South Korea Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
South Korea Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
- Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 - 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.
- Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.
- Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.
- Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in South Korea, develop proactive and profitable company plans.
Table of Contents
1. About this Report
2. South Korea Economic Indicators
3. South Korea Alternative Lending Industry Attractiveness
4. South Korea Alternative Lending Market Size and Forecast by End User
5. South Korea Alternative Lending Market Size and Forecast by Finance Models
6. South Korea Alternative Lending Market Size and Forecast by Payment Instrument
7. South Korea Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. South Korea Alternative Lending Market Size and Forecast by Loan Types
9. South Korea Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 189 |
| Published | September 2024 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value ( USD | $ 6.6 Billion |
| Forecasted Market Value ( USD | $ 13.4 Billion |
| Compound Annual Growth Rate | 19.3% |
| Regions Covered | South Korea |
