The FSC announced a schedule for demand survey and preliminary consulting for MyData businesses on May 13. As the revision of the Credit Information Use and Protection Act is scheduled to take effect on August 5, financial companies and fintechs planning to enter the MyData industry should gain approval from the FSC.
(REQUIREMENTS) By law, MyData business operators are required to have a minimum capital of KRW500 million and adequate telecommunications facilities for safe data processing, while satisfying the major shareholder and feasibility of business plan requirements.
Licenses will be granted based on the holistic evaluation of firm’s capabilities to process data in a safe and secure manner.
(RESTRICTIONS) In principle, there is no quota regarding the number of MyData licenses offered to business entities. Multiple entities within a financial group or a holding company may be granted licenses to operate MyData businesses. Financial companies will be subject to the same evaluation standards as fintech firms for MyData licenses.
DEMAND SURVEY & PRELIMINARY CONSULTING
The FSC will carry out a demand survey from May 14 to May 28 to see how many business entities are planning to apply for MyData licenses. Interested entities should submit their demand survey forms to email@example.com.
An information session will be held in June for the businesses that have submitted their demand survey forms and a preliminary consulting will be provided in June-July to help firms with relevant documents and processes.
(FOR CONSUMERS) MyData businesses will enable ‘pocket finance’—consumers will be able to manage their personal credit information and financial products within the palm of their hands. Consumer convenience will be improved as consumers will no longer need to access individual financial institutions to view their credit and asset information dispersed across many different entities. Consumers will also be able to enjoy more personalized credit and asset management services at reasonable costs.
(FOR BUSINESSES) MyData services will provide a solid foundation to further develop the big data industry. With a more consumer-oriented approach, MyData services will change the way financial companies develop their products and services, which will help improve the productivity and competitiveness of the financial industry. The freedom of data movement will provide financial companies with incentives to develop products and services more tailored to the personal needs of consumers.
Establishing the basic infrastructure for the data industry will also create a safe and secure environment for transparency in the management of data transfer records and usage.
* Please refer to the attached PDF for details.