Eight Percent, an online investment-linked finance (P2P finance) company, has seen cumulative investments in its loan claims exceed 20 million.

Eight Percent said on Aug. 20 that cumulative investments in the loan claims it handles have topped 20 million. Total funds invested in the loan claims so far are 1.46 trillion won.

Eight Percent offers loan-claim investment products including real estate collateral loans, personal credit loans and securities account collateral loans. The structure disperses the risk of individual claims by having investors split funds across multiple loan claims.

The company said the investment products’ average annual return was calculated at 10.3 percent. As of July 31, the delinquency rate was 1.87 percent and the average loss rate over the past 3 years was 0.61 percent. The average loss rate over the past 3 years for real estate collateral loans was 0.04 percent.

Online investment-linked finance investments distribute interest generated from loan claims to investors. Unlike savings and time deposits, principal is not guaranteed, and investors may lose part or all of their principal if borrowers delay repayment or default. It also said investors need to check the investment period and repayment method, collateral and claim priority, expected return and risk factors.

Investment limits differ by investor type. Retail individual investors can invest up to 40 million won, and income-qualified investors up to 100 million won, while professional investors have no separate investment limit.

Chief Executive Lee Hyo-jin (이효진) said: "The cumulative 20 million investments are the result of investment demand from those seeking regular cash flow translating into actual investments." She added: "We will strive to provide predictable cash flow to investors."