[Start! MyData] 20 Trillion Market Opens... Full License Start

Financial Services Commission to Review Final Licenses for 28 Companies Today

[Asia Economy Reporter Park Sunmi] The era of MyData, where consumers can freely manage their own credit information and financial products, will begin on the 5th of next month. The success or failure of the MyData business, emerging as a catalyst and growth engine for future industries, depends on who first secures a favorable position and offers differentiated services. Companies that receive final approval from financial authorities on the 27th will enter full-scale survival competition starting next month.

The Financial Services Commission (FSC) will select the final licensed operators for personal credit information management (MyData) at its regular meeting composed of nine members on the afternoon of the 27th. The review targets 28 companies, including five banks?Kookmin, Shinhan, Woori, Nonghyup, and SC First Bank?that have obtained preliminary licenses, as well as 14 fintech companies including Naver Financial. Companies that pass the final licensing review will begin competing to capture the domestic data industry market worth 20 trillion won starting from the 5th of next month. Companies that fail to obtain licenses must cease their existing MyData-like services.

According to the Ministry of Science and ICT and others, the domestic data industry market size grew by more than 14%, from 16.8582 trillion won in 2019 to 19.2736 trillion won last year. By sector, the data sales and provision service industry is the largest, at 9.3752 trillion won. As MyData services become fully operational, the data market size is expected to grow even faster. The government is currently working on plans to expand the domestic data market to 30 trillion won by 2023.

MyData refers to services that integrate and manage individual financial consumers' financial information. Operators can analyze customers' card transaction histories, insurance information, investment data, and recommend advantageous financial products. Customers can compare their own credit scores, assets, loans, and the conditions of financial products subscribed to by similar consumers. Additionally, they can receive personalized loan product recommendations from financial companies through MyData applications (apps) and subscribe accordingly.

From the consumer's perspective, there is also the advantage of creating an 'inclusive finance' environment. Even elderly consumers or those unfamiliar with financial services can easily manage their financial information and assets all at once.

Consequently, changes in the financial industry landscape are inevitable. Senior Research Fellow Seo Byungho of the Korea Institute of Finance predicted, "If MyData operators also obtain the comprehensive payment business license to be introduced this year, enabling account issuance, transfers, and remittances, it will effectively introduce new competitors within the banking industry, thereby changing the industry's landscape."