Accelerated MyData Review... Fierce Competition Expected in August

[Asia Economy Reporter Kiho Sung] As the personal credit information management business (MyData) is set to officially launch in August, the related industry is becoming increasingly busy. In particular, the resumption of the review for KakaoPay, which had been held up due to major shareholder eligibility issues, has added significant weight to the situation. More than 60 companies are expected to enter the MyData business in the first half of this year, making competition even fiercer.

According to financial authorities on the 15th, among the 37 existing companies that applied for MyData licenses last year, KakaoPay, one of the seven companies whose reviews were put on hold due to major shareholder eligibility issues, passed the preliminary approval on the 12th.

The financial authorities had previously suspended KakaoPay's MyData review due to concerns over major shareholder eligibility. This was because it was not confirmed whether KakaoPay's second-largest shareholder, China's Ant Group, had been sanctioned by Chinese authorities.

However, recently, contact was made with Chinese financial authorities such as the China Banking and Insurance Regulatory Commission and the People's Bank of China, leading to the resumption of KakaoPay's MyData licensing review. KakaoPay is expected to apply for the full license by the end of this month and plans to resume the MyData service, which has been suspended since February, as soon as the financial authorities grant approval in June.

Among the seven companies whose reviews were suspended, four affiliates of Hana Financial Group resumed their reviews from the end of March. However, only Samsung Card and BNK Gyeongnam Bank remain stalled in the preliminary approval process. Gyeongnam Bank's major shareholder, BNK Financial Group, is currently undergoing a second trial in a criminal case related to stock price manipulation, and Samsung Card is also facing ongoing sanction procedures against its major shareholder, Samsung Life Insurance.

In last month's second round of MyData business applications, 25 companies applied for preliminary approval and six applied for full approval, totaling 31 companies entering the business. Additionally, in the early-year pre-demand survey for the MyData business, about 80 companies expressed their intention to participate.

As the financial authorities accelerate the review process, competition is expected to become more intense. The financial authorities plan to accept applications regularly on the last Friday of every month.

From the second review onward, the process will proceed on a two-track system of preliminary and full approvals. While it is common to apply for full approval after receiving preliminary approval, companies that judge themselves to meet all licensing requirements, including facilities and personnel, can skip the preliminary approval and apply directly for full approval.

Companies that fail the review can also reapply. However, the Financial Supervisory Service advised that failure may negatively affect the company's reputation, so applications should be made 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.