[Asking the Path to Data Economy] ICT is a Strong Nation, Data is a Backward Nation

[Asia Economy Reporter Seulgina Jo] Company A, which has been providing a service that transmits electronic prescriptions from hospitals to pharmacies, was prosecuted in 2015 on charges of leaking patients' personal information but was acquitted in the first trial this March. The period taken for the court's decision was a staggering 4 years and 8 months. Meanwhile, Company A's service, which had been highly regarded for its efficiency, was pushed out of the market. Company B, which stopped its big data utilization business three years ago due to a prosecution complaint, recently considered resuming its business following the enforcement of the Data 3 Act (Personal Information Protection Act, Information and Communications Network Act, Credit Information Act) but ultimately gave up due to fears of being embroiled in legal disputes again.

According to the related industry on the 18th, although the enforcement date of the Data 3 Act (August 5), which was expected to open the door to the data economy, is less than 50 days away, confusion in the market is rather increasing. This is because the enforcement decree is actually strengthening data regulations, and specific guidelines containing concrete cases to help companies avoid legal disputes have not yet been prepared.

A representative of a large company preparing a big data business expressed difficulties, saying, "While new businesses through data integration are becoming a reality overseas, it is impossible to even attempt it domestically." This is a sharp criticism that Korea, an ICT powerhouse, remains a 'data underdeveloped country.' Unlike the US, China, and others who have long bet their lives on the data economy, known as the 'oil of the future,' domestic companies are stuck, blocked by regulations. Regarding this, Seongyeop Lee, president of the Korea Data Law Policy Association (professor at Korea University Graduate School of Technology Management), pointed out problems such as inconsistent provisions between the Personal Information Protection Act and the Credit Information Act, and that subordinate laws under the enforcement decree make data utilization even more difficult.

While domestic companies are held back, the global economic hegemony is rapidly shifting around the data economy. The global data market is expected to grow from $150.8 billion in 2017 to $210 billion in 2020. Economists expect that if efficiency improves by 1% through data utilization, an additional $15 trillion will be added to the global Gross Domestic Product (GDP) by 2030.

On the other hand, Korea's level of data trade, despite being an ICT powerhouse, falls far short of its economic scale. According to McKinsey, as of 2016, Korea ranked 44th in data trade, showing a large gap compared to its 7th place ranking in goods and services trade in the same year. Kwanghyun Jo, president of the Korea Data Industry Association and operator of a big data company, pointed out, "(The Data 3 Act) should not become another regulatory law," and emphasized, "It is necessary to boldly break the gap between current regulations and new technologies, like in the US and China, where related regulations are almost nonexistent."