28 Companies Including Kookmin and Shinhan Bank Receive Final Approval... 20 Trillion Won Market Opens (Comprehensive)

Financial Services Commission, Final Approval Review for 28 Companies Today "All Passed"

[Asia Economy Reporter Sunmi Park] The era of MyData, where consumers can freely manage their own credit information and financial products, will open on the 5th of next month. The success or failure of the MyData business, emerging as a catalyst and new growth engine for future industries, depends on who first secures a favorable position and offers differentiated services. On the 27th, 28 companies that received final approval from financial authorities will enter full-scale survival competition starting next month.

The Financial Services Commission (FSC) selected the final licensed operators for the Personal Credit Information Management Business (MyData) at its regular meeting composed of nine members on the afternoon of the same day. The 28 companies granted final approval include five banks: Kookmin, Shinhan, Woori, NongHyup, and SC First Bank; six credit card companies: Kookmin Card, Woori Card, Shinhan Card, Hyundai Card, BC Card, and Hyundai Capital; 14 fintech companies such as Naver Financial, Min&Ji, Bomep, Viva Republica, Bank Salad, Kukon, TeamWink, Finda, Fintech, Korea Financial Solutions, Korea Credit Data, Habit Factory, NHN Payco, and SK Planet; as well as Mirae Asset Daewoo, NongHyup Central Association, and Welcome Savings Bank.

The FSC stated, "The 28 companies granted final approval are those that have been providing similar MyData services and meet the licensing requirements under the Credit Information Act, so they are deemed capable of conducting the Personal Credit Information Management Business."

Companies that passed the final approval screening will officially compete to capture the domestic data industry market worth 20 trillion won starting from the 5th of next month. Companies that did not receive licenses must cease their existing similar MyData service activities.

Data Industry Market Size Approaching 20 Trillion Won
Full-Scale Competition Begins

According to the Ministry of Science and ICT and others, the domestic data industry market size grew 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 progressing with plans to raise the domestic data market to 30 trillion won by 2023.

MyData refers to a service that integrates and manages an individual financial consumer’s financial information. Operators can analyze customers’ card transaction histories, insurance information, investment information, etc., to 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 and subscribe to customized loan products recommended by financial companies through MyData applications (apps).

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 Byungho Seo 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 landscape."