Preliminary and Final Approval 'Two-Track'
Applications Accepted on the Last Friday of Every Month
[Asia Economy Reporter Kiho Sung] Financial authorities have resumed the second round of licensing reviews for the Personal Credit Information Management Business (MyData), scheduled to be implemented in August. From the second review onward, a ‘two-track review’ system will be introduced, allowing companies that meet the licensing requirements to apply directly for the full license, which is expected to encourage active participation from companies.
According to the financial sector on the 23rd, the financial authorities began accepting applications for the second round of MyData licensing from that day. Previously, the Financial Supervisory Service held a briefing session for MyData operators on the 16th. Going forward, applications will be accepted regularly on the last Friday of every month.
The second review will proceed with a two-track system of preliminary licensing and full licensing. Generally, companies apply for full licensing after receiving preliminary approval, but companies that judge themselves to meet all licensing requirements, including facilities and personnel, can skip the preliminary license and apply directly for the full license.
Companies that fail the review can also reapply. However, the Financial Supervisory Service cautioned that failure may negatively affect the company’s reputation, so applications should be submitted after thorough preparation. Although reviews are conducted in the order of application receipt, the order of license granting will be determined considering the adequacy of preparation.
It is estimated that about 50 companies will apply during the second review. Fifty-seven companies attended the previous briefing session. In the banking sector, IBK Industrial Bank of Korea will take on the challenge. In the first review, five major commercial banks?KB Kookmin, Shinhan, Woori, NH Nonghyup, and SC First Bank?received full licenses.
Regional banks such as DGB Daegu Bank and JB Financial Group (JB Gwangju and JB Jeonbuk Banks) are expected to submit applications. JB Financial Group is promoting joint projects between Gwangju and Jeonbuk Banks to create synergy within the group. Among card companies, Lotte Card plans to additionally apply for MyData business licensing.
In the financial investment sector, NH Investment & Securities, Korea Investment & Securities, Shinhan Financial Investment, and Kiwoom Securities are applying for the MyData business. Among insurance companies, Kyobo, Shinhan Life, KB Insurance, and Meritz Fire & Marine Insurance are expected to apply.
However, the improvement plan for the review suspension system, which the financial authorities are discussing, remains an unresolved issue. In particular, Kakao Pay, which is facing major shareholder eligibility issues, has suspended related services for two months due to this problem. But since reviews will be conducted monthly going forward, if the financial authorities reach a certain conclusion, Kakao Pay is expected to participate in the review promptly.
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