FSC Chief to Review Toss On-Tu Push After Audit Concerns

Lawmakers raised concerns about Toss's push into the online investment-linked finance (on-tu) business during the National Assembly Political Affairs Committee audit of the Financial Services Commission, according to digitaltoday.co.kr. Financial Services Commission Chairman Lee Eok-won said he would review again the concerns raised at the audit.

People Power Party lawmaker Choi Eun-seok and Democratic Party lawmaker Min Byeong-deok called for regulatory review by financial authorities regarding Viva Republica's push into the on-tu business. Choi said 47 on-tu companies are currently registered, with small operators holding capital of 500 million to 3.5 billion won. He also said Toss charges a 1.8% brokerage fee on loan amounts while banks charge around 0.08%.

Min said Toss operating a loan comparison platform while directly entering the on-tu business creates a conflict of interest, comparing it to a referee playing as a player. Democratic Party lawmaker Lee Kang-il also raised concerns about possible damage to fintech market competition order from Toss's business expansion.

Background

Toss was reportedly pushing into the on-tu business to expand personal credit loans for mid-to-low credit borrowers. Six on-tu companies (MoneyMove, Mouda, Earnest AI, Eight Percent, PFCT, Hanpass Financial) issued a joint statement on the 10th of last month calling for pre-management criteria on large corporate groups and large financial platforms entering the on-tu business. On the 22nd of last month the FSC announced measures to strengthen on-tu business competitiveness.