Expectations Rise for Related Stocks Following Enforcement of the Data 3 Act

[Asia Economy Reporter Eunmo Koo] With the full-scale implementation of the amended "Data 3 Act (Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act)," investor interest is rising in companies expected to launch new businesses utilizing high-quality data.

According to the Korea Exchange on the 6th, Kakao's stock price closed at 370,500 KRW, up 0.14% (500 KRW) from the previous trading day, continuing its upward trend for eight consecutive trading days. NAVER and NHN also closed higher. Additionally, the existing credit rating agency Korea Investors Service maintained a five-day consecutive rise, while companies pursuing entry into the credit evaluation business using big data, such as Douzone Bizon, and credit authentication service specialist iCredible, also continued their recent stock price uptrend.

With the Data 3 Act, passed by the National Assembly in January, coming into full effect from the previous day, the value of internet companies holding high-quality data is drawing attention, attracting investor interest. The implementation of the amended law is expected to create various application business opportunities based on data, and companies that secure a competitive edge and early market entry in related industries are anticipated to see their corporate value rise sharply.

So-hye Kim, a researcher at Hanwha Investment & Securities, predicted, "The newly emerging areas will involve fierce competition not only among fintech and platform companies but also with existing financial institutions such as banks and insurance companies, creating an infinite competitive landscape. However, ultimately, companies that dominate the market will reflect a level of value increase that is currently difficult to imagine."

The core of the amended Data 3 Act, aimed at revitalizing data use and fostering related new industries, is the introduction of the concept of "pseudonymous information." Pseudonymous information is data in which part of the personal information is masked or replaced to prevent identification of the individual. Researcher Kim explained, "The use of pseudonymous information enables the development of new services, technologies, and products, and allows the introduction of new revenue models reflecting consumer tendencies and usage frequency."

If personal information is fully pseudonymized, it can be shared with third parties without the consent of the individual. For example, a "credit card company" and an "automobile company" can exchange pseudonymous information to compile statistics or develop services.

With the implementation of the Data 3 Act, the credit evaluation market is expected to expand, leading to the start of small business loan projects. Additionally, the MyData industry is expected to blossom, and changes in the financial service delivery system will occur through the introduction of comprehensive payment services.