Although the 'Data 3 Act' Passed... Card Industry 'Half Expectation, Half Concern'

Cautious Views Amid Optimism Over New Business Opportunities

[Asia Economy Reporter Ki Ha-young] With the passage of the amendment to the Data 3 Laws (Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act) through the National Assembly, the card industry is experiencing a mix of anticipation and caution. While they welcome new business opportunities utilizing big data, they emphasize the need to wait as the enforcement decree has not yet been established.

According to the card industry on the 15th, following the approval of the amendment to the Credit Information Act at the plenary session of the National Assembly held on the 9th, card companies are considering entering new businesses such as the MyData industry and credit evaluation (CB) services for individual entrepreneurs.

The Data 3 Laws introduce the concept of pseudonymized information, which is processed so that specific individuals cannot be identified, allowing its use without individual consent. Accordingly, industries such as MyData, which enables individuals to directly manage and verify their personal information, and the CB industry can now be promoted. For example, with individual consent, personal information scattered across various financial institutions such as banks, insurance companies, and card companies can be gathered to provide customized asset management services. For the card industry, which has been struggling with profitability deterioration due to reduced merchant fees, the passage of this law presents an opportunity to expand the scope of data utilization.

An industry insider from the card sector explained, "The passage of the Data 3 Laws has opened the door to promoting the MyData and CB industries," adding, "For the card industry pursuing business diversification, this means securing new revenue sources." They also added, "Big data can be used to conduct personalized marketing optimized for individuals."

However, there is also a cautious view that it is necessary to wait until the enforcement decree is issued. Among consumers, concerns have been raised that personal information could be used for commercial purposes without the subject's consent due to the passage of this law. Another industry official stated, "The amended content alone does not define pseudonymized information or the scope of information sharing, so there is uncertainty about feasible businesses," and added, "We need to wait until the specific enforcement decree is released."

Another industry representative said, "Digital innovation is a key issue for card companies," and added, "We are watching to see if big data-related businesses, which have been difficult to pursue due to regulations, will gain momentum with the passage of the Data 3 Laws."