One Year After the Enforcement of the Three Data Laws in August Last Year
Integrated Measures Including the Basic Data Act Established
Both Ruling and Opposition Parties Agree on Promoting the Data Industry
"Expecting Swift Passage in the Legislation and Judiciary Committee"
[Asia Economy Reporter Minyoung Cha] An integrated bill, including the proposed "Data Framework Act," was approved at the full committee meeting of the National Assembly's standing committee just over one year after the implementation of the "Three Data Laws." It is expected that the bill will be promptly passed in the Legislation and Judiciary Committee as it is a bipartisan agreement.
The "Basic Act on the Promotion and Utilization of the Data Industry (alternative bill)" prepared by the National Assembly's Science, ICT, Broadcasting and Communications Committee was approved by bipartisan consensus at the full committee meeting held from 11 a.m. that day.
The committee's alternative bill is a consolidated version of three bills that passed the bill review subcommittee that morning: the "Data Framework Act" (proposed by Democratic Party lawmaker Seungrae Cho), the "Act on the Promotion of Data Utilization and Industry" (proposed by People Power Party lawmaker Eun-ah Heo), and the "Data Industry Promotion Act" (proposed by People Power Party lawmaker Young Lee). Even if the bills amend the same law, the National Assembly consolidates multiple bills into one "alternative" for approval if the sponsoring lawmakers or contents differ.
The longest-pending bill based on the proposal date is the Data Framework Act, which was proposed in December 2020. The Act on the Promotion of Data Utilization and Industry was also proposed in the same month, while the Data Industry Promotion Act was proposed in April of this year.
The Data Framework Act includes the legal definition of "data." According to the bill, data is "materials such as characters, numbers, figures, charts, images, videos, voice, and sound, or processed combinations thereof, acquired through observation, experiments, surveys, collection, etc., or generated through information systems and software as defined in Article 2, Paragraph 1 of the Software Industry Promotion Act, for the purpose of combining, processing, and utilizing to create various added values."
The Data Framework Act also stipulates necessary matters regarding the promotion of data production, trade, and utilization, including provisions to establish a basic plan for data industry promotion every five years, foster data producers, and build a convergence infrastructure as part of promotion policies.
To protect data assets, the bill includes provisions to prevent illegal acquisition of data assets and provides exemptions allowing the use of others' copyrighted works and publicly available personal data when necessary for information analysis using data.
Notably, the bill contains provisions related to the data portability right, closely linked to the government's "MyData" policy. Data portability allows data subjects to receive their data or request that their data be provided to authorized data managers. MyData services are expanding from the financial sector?including banks, card companies, and insurance companies?to the entire business sector, including the public domain.
The bill also aims to activate data trading by preparing standard contracts related to data transactions and recommending their use to data businesses. A new profession called "Data Trader" is expected to emerge. These registered experts, authorized by the Minister of Science and ICT, will operate based on specialized knowledge of data transactions. The bill also includes the establishment of a Data Dispute Mediation Committee.
The enforcement date provision was shortened from one year to six months after the law's promulgation, enabling the Ministry of Science and ICT, the competent authority, to implement policies earlier.
A National Assembly Science, ICT, Broadcasting and Communications Committee official said, "Due to delays in bill processing, the enforcement date clause was shortened from one year to six months. The Ministry of Science and ICT naturally supports this, and since it is a bipartisan agreement, we expect the bill to easily pass the Legislation and Judiciary Committee."
Lawmaker Seungrae Cho said, "Institutional support is necessary to actively respond to the era of the data economy and digital transformation. With the enactment of the Data Framework Act, South Korea can become a leading digital powerhouse globally."
Kim Donghan, Secretary-General of the Korea Data Industry Association, said, "Although data-related content is included in the so-called 'Three Data Laws'?the Personal Information Protection Act, the Information and Communications Network Act, and the Credit Information Act?the purpose of those laws is not the promotion of the data industry itself, so there was a strong need for a basic legal system. While immediate major changes are unlikely, it is significant that a foundation for future institutional development has been established."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
