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Marketplace Lending (Consumer) - South Korea

South Korea

South Korea is projected to reach a total transaction value of US$0.7bn in the MarketMarketplace Lending (Consumer) market market by 2024.
In a global comparison, the United States is forecasted to have the highest transaction value, amounting to US$26,720m in 2024.
Key Market Indicators offer a glimpse into the social and economic landscape of South Korea, providing valuable insights into market-specific trends.
These indicators, along with data from statistical offices, trade associations, and companies, form the basis for the Statista market models.
South Korea's Marketplace Lending sector in Capital Raising is experiencing a surge in peer-to-peer platforms offering diverse investment opportunities to retail investors.

Key regions: Singapore, United States, Israel, United Kingdom, Australia

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Region comparison

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Analyst Opinion

The Marketplace Lending (Consumer) market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a strong preference for marketplace lending as an alternative to traditional banking services. This is partly due to the convenience and accessibility offered by online platforms, which allow borrowers to easily apply for loans and receive funds quickly. Additionally, marketplace lending platforms often provide more competitive interest rates and fees compared to traditional banks, making them an attractive option for cost-conscious consumers.

Trends in the market: One key trend in the South Korean marketplace lending market is the increasing adoption of mobile technology for loan applications and transactions. With the high smartphone penetration rate in the country, borrowers are able to access marketplace lending platforms anytime and anywhere, further enhancing the convenience factor. This trend is expected to continue as mobile usage continues to rise in South Korea. Another trend in the market is the growth of peer-to-peer (P2P) lending platforms, which connect individual lenders with borrowers. P2P lending has gained popularity in South Korea due to its potential for higher returns for lenders and lower interest rates for borrowers. This trend is driven by the increasing trust and confidence in online platforms, as well as the desire for individuals to diversify their investment portfolios.

Local special circumstances: South Korea has a highly developed and technologically advanced financial sector, which has facilitated the growth of marketplace lending. The country has a strong regulatory framework in place to protect borrowers and lenders, ensuring transparency and fairness in the marketplace lending industry. This has helped to build trust among consumers and encourage the adoption of marketplace lending as a viable alternative to traditional banking.

Underlying macroeconomic factors: The growth of the marketplace lending market in South Korea can also be attributed to the country's low interest rate environment. With interest rates at historic lows, borrowers are seeking alternative sources of financing, and marketplace lending platforms offer an attractive solution. Additionally, the country's high household debt levels have also contributed to the demand for marketplace lending, as consumers look for ways to manage their debt more effectively. In conclusion, the Marketplace Lending (Consumer) market in South Korea is experiencing significant growth due to customer preferences for convenience and competitive rates, as well as the adoption of mobile technology and the growth of P2P lending platforms. The country's strong regulatory framework and low interest rate environment have also played a role in driving the growth of the market. As marketplace lending continues to gain traction in South Korea, it is expected to become an increasingly important part of the country's financial landscape.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.