P2P lending growth slows in July

SEOUL-- South Korea's peer-to-peer lending growth slowed in July after financial regulators asked lenders to tighten guidelines for individual investors, industry data showed Tuesday.

According to data compiled by the Korea P2P Financial Association, lending between peers grew by 104.7 billion won (US$93.1 million) in July to a cumulative 1.2 trillion won.

In comparison, P2P lending grew by 172.8 billion won in June.

Under the tightened guidelines, which took effect from May 29, a person is banned from investing more than 10 million won into a P2P lending firm.

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.

Source: Yonhap News Agency

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