Internet usage in Korea is booming, most surfers enjoy broadband internet access. Furthermore the population is very open minded towards new technologies.
This year two P2P lending services launched.
Popfunding.com allows borrowers to get loans up to a maximum amount of approx. 2000 US$. Interest rates are auctioned. Maximum interest rate is 29 percent. The CEO is Hyun Uk Shin. According to the Korea Times the service does NOT charge fees from borrowers or lenders. Only bank fees have to be paid. If a borrower fails to make a payment popfunding.com will disclose his identity and contact information to the lender.
Moneyauction.co.kr has a similar concept.
Financial regulators are looking into the concepts to check if they are in compliance with korean laws.
(Sources: Ringblog, Korea Times)