MyData industry will be introduced to financial fields. It is expected that ‘financial assistant within my hand’, which helps with credit management through data-based FinTech innovation, will become a reality.
Invigoration of information broker market that provides personalized information to financial consumers is expected.
“When MyData industry becomes stabilized, we will be able to avoid from current high-cost structure and provide reasonable-priced financial advice services for working class based on innovative data processing technology.” said Chairman Choi Jong-ku of Financial Services Commission (FSC) at a ‘meeting for introduction of MyData industry into financial fields’ that was held at D.CAMP on the 18th.
MyData industry is an industry that effectively supports individuals with management and use of security information. The Presidential Committee on the 4th Industrial Revolution voted on ‘strategies for invigorating MyData industry’ last month and is pushing for pilot projects on medical and telecommunication fields with Ministry of Science and ICT at the center.
FSC also formed a data-based FinTech ecosystem to introduce MyData industry to financial fields so that various FinTech companies can sell and recommend innovative financial products.
FSC is planning to separate MyData industry for financial fields as ‘an industry that manages one’s credit information’ so that comprehensive inquiry service on one’s credit information can be provided. FSC is going to manage MyData industry separately from current credit bureaus (CB). Along with comprehensive inquiries, FSC is going to allow MyData industry with ancillary duties such as data analysis and consulting and investment consultation based on these ancillary duties.
FSC is going to evaluate information protection and security and regulations on controlling shareholders and combination of management of another business by introducing an approval system. FSC decided minimum capital to be $440,000 (500 million KRW). Obligation of 50% investment by financial organizations is eliminated unlike individual CB. It seems that FinTech companies such as Viva Republica and Toss will be under supervision by financial authorities.

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<Chairman Choi Jong-ku of Financial Services Commission is shaking hands with an attendee at a meeting that was held at D.CAMP.>

FSC is also going to prepare legal groundwork to guarantee rights to respond to profiling by introducing individual credit information mobility right that is starting to be introduced with EU at the center. This is part of FSC’s measure to respond to EU’s GDPR (General data Protection Regulation).
When GDPR is applied, one can receive, read, and correct issues regarding his or her data processing. When principles, agreement, and transfers are violated according to GDPR, companies can be fined with 4% of annual sales or 20 million Euros. GDPR is a type of a methodology for making data public. Europe has guidelines for financial companies to provide data in an open API (Application Programming Interface) form.
It is expected that it will be inevitable for financial companies to change their ways of managing individual credit information. FSC has decided to state individual credit information mobility right as a law so that MyData businesses can use individual credit information.
Individual credit information mobility right is a right for information agencies to request financial institutions to move individual credit information and it is a type of information sovereignty that was newly introduced by EU in May.
As open API has emerged as an ‘alternative’ to respond to GDPR, 10 South Korean financial companies set up separate partnership system with Financial Security Institute.
There are still tasks such as Credit Information Act and others that need to be decided beforehand.
In order for data industry to grow, there need to be infrastructures that combine and process Big Data from other areas such as telecommunication as well as financial information. Although establishment of a CB for telecommunication was looked into, this plan is currently on hold due to postponement of revision of Credit Information Act.
“For MyData industry to be effective, South Korean Government must quickly resolve poisonous clauses of Credit Information Act and revise Credit Information Act by working with The National Assembly as soon as possible.” said a representative for a bank.
Staff Reporter Ryu, Geunil | ryuryu@etnews.com & Staff Reporter Gil, Jaeshik | osolgil@etnews.com