Securing Growth Drivers for Big Data Business
Top Beneficiaries Including NICE Pyeongga Jeongbo Show Upward Trend
[Asia Economy Reporter Minwoo Lee] The 'Data 3 Act (Amendments to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act),' which allows the use of personal information processed to prevent identification of individuals, has passed the National Assembly after 14 months since its proposal. Expectations are rising that the shackles on data utilization, considered the 'crude oil' of the 4th Industrial Revolution, will be lifted, and related stocks are also showing an upward trend.
According to the Korea Exchange on the 10th, NICE Information Service closed at 15,850 KRW, up 12.01% from the previous trading day. In addition, stocks of companies engaged in data utilization businesses such as Openbase and eCredible are also on the rise. Openbase, for example, recorded its lowest price in three months at 2,930 KRW on November 22 but closed at 3,730 KRW, up 27.3% the previous day. The news that the National Assembly plenary session would be held to pass the 'Data 3 Act' acted as a positive factor. Although the bill was discussed several times since its proposal in November last year, it failed each time, causing stock prices to fluctuate. However, with the ruling and opposition parties finally passing the Data 3 Act the previous evening, it is evaluated that the stock prices have gained momentum for further growth.
The core of the Data 3 Act is to actively utilize personal information. The amendment to the Personal Information Protection Act includes provisions allowing pseudonymized information, processed so that specific individuals cannot be identified, to be used for purposes such as statistical compilation and research without the individual's consent. The amendment to the Credit Information Act also allows pseudonymized information to be used or provided without the consent of the credit information subject for commercial statistical compilation, research, and public interest record preservation. The amendment to the Information and Communications Network Act mainly transfers all personal information-related matters to the Personal Information Protection Act.
Recently, regulations that prohibited credit information (CB) businesses from engaging in other tasks have been abolished, and with the promotion of personal credit information management businesses known as MyData, it is analyzed that the passage of the Data 3 Act will further accelerate this trend. For CB companies, a stage has been set to conduct businesses such as big data analysis and consulting for profit. Large overseas CB companies like Experian in the U.S. have already been launching various new services such as big data consulting based on their vast information holdings. NICE Information Service, having devoted itself to big data business for a long time through its subsidiary Genie Data, is accumulating expectations for a 'rosy outlook' in the future.
Junki Baek, a researcher at NH Investment & Securities, said, "Especially, NICE Information Service, the largest CB business operator in Korea, will benefit greatly," adding, "The amendment to the Credit Information Act has expanded the scope of big data utilization, securing additional growth potential beyond existing businesses."
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