The Financial Supervisory Service said that P2P (person-to-person) investment products are not protected by depositors, and urged caution, such as checking whether they are officially registered companies.
The Financial Supervisory Service said that if you wish to invest in related products, you should first check whether the company is officially registered in the system through the financial consumer information portal ‘Fine’.
This is because, if you use an unregistered company, you cannot receive investor protection under the Financial Consumer Protection Act, even if there is an illegal or unfair act.
The FSS also warned that P2P financial products are not subject to depositor protection, so if the borrower does not repay the loan at maturity, there is a possibility that the entire investment principal may not be returned.
In addition, he emphasized that high-risk products such as real estate PF (project financing) handled by various online investment-linked financial companies have higher expected returns than other products, but also have high risks.
Therefore, it is recommended to make an investment decision after checking the real estate market outlook at the time of product investment or the recent pre-sale rate near the business site.
In addition, as the ‘On2’ industry mainly deals with subordinated loans, he said that it is helpful to check various investment-related information provided through the company’s website before investing, saying that the risk of default is greater than that of seniority.
He added that if a company is making false or exaggerated advertisements, such as promising excessive compensation without accurate information or specific grounds, it is better to be wary.
In addition, he said that P2P financial products, unlike time deposit products of banks, cannot be canceled prematurely by investors.