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Online Lending Firms Oppose Big Tech Entry, Citing Market Distortion
Finance · Finance/Rental/Leasing · yonhap_finance · 2026-09-10
Six online lending firms have issued a joint statement opposing the entry of major financial platforms like Toss, citing risks of conflicts of interest.
What Happened
Industry Opposition: Six online lending companies, including Honest Fund and 8Percent, have jointly opposed the entry of large corporate groups and financial platforms like Toss into their market. They argue that the entry of major players could lead to significant conflicts of interest and market distortion.
Market Distortion Concerns: The firms warn that if a platform combines loan brokerage with product supply, it could prioritize its own or affiliated products while misusing competitor data. They characterize the entry of large firms as a zero-sum game that threatens the growth foundation of existing small and medium-sized operators.
Regulatory Demands: The industry highlights a lack of institutional mechanisms to evaluate the impact of large corporate entry on market health. They are calling for transparent standards regarding fair trade between affiliates and objective criteria for product recommendation and exposure.
Future Strategy: The sector plans to engage with financial authorities and experts to establish clear principles for the entry of large financial institutions. They aim to build a robust institutional framework that protects the existing ecosystem while continuing to serve low-to-mid credit borrowers.