Ministry of Science and ICT & Ministry of Trade, Industry Raise Concerns Over Overlapping Regulations in Data Law
Legal and Data Industry Sectors Highlight 'Governance' Issues
Both Ministries: "No Conflicts... Cooperating to Minimize Market Confusion"
[Asia Economy Reporter Cha Min-young] Uncertainties in policy governance have been pointed out as an issue regarding the nurturing and regulatory measures for Korea's data industry, often described as a "path not yet traveled." There are concerns about overlapping laws related to the data industry managed by the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy, and there is a call for establishing a governance system to determine which entity will take the lead in policy as the data industry grows in the future.
Professor Lee Seung-min of Sungkyunkwan University School of Law raised this issue during a webinar titled "Issues and Tasks of the Data Basic Act and the Industrial Digital Act," hosted by Law Firm Sejong and the Korea Data Law Policy Association on the afternoon of the 22nd. He said, "In administrative regulation, governance systems often determine the effectiveness of laws more than individual laws themselves."
Previously, as the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy each proceeded with legislation regarding data industry regulation and utilization, concerns about coherence arose. The 'Data Industry Act' led by the Ministry of Science and ICT is scheduled to take effect in April, while the 'Industrial Digital Transformation Act' led by the Ministry of Trade, Industry and Energy will be enforced starting July. The Data Industry Act is a basic law focusing on protecting data assets, whereas the Industrial Digital Transformation Act is a special law focusing on the creation and utilization of industrial data.
Professor Lee noted, "Coordination among regulatory agencies will be necessary during the enforcement process in the field," adding, "Currently, the laws are divided between the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy, and the Fair Trade Commission also plays an important role, so I think this is a governance issue."
Dr. Jung Yong-chan of the Korea Information Society Development Institute also expressed agreement on the governance issue. He said, "Starting with these two laws, I understand that other laws related to industrial digital transformation are pending in the National Assembly in areas such as small and medium enterprises," emphasizing, "Data governance is often said to be important for utilizing data, and related legal systems also need to establish governance."
From the perspective of a data analyst in the field, attention was also drawn to governance systems related to 'standards.' For example, regarding standard issues, there is a need for sufficient prior discussion on how the Ministry of Science and ICT will resolve governance issues with other ICT specialized agencies or the National Institute of Technology and Standards to ensure efficient analysis work in the field.
Park Jae-hyun, CEO of KDX Korea Data Exchange, also stated, "There are many overlapping parts between the two laws, so it is necessary to clarify the overall governance," warning that if the two ministries protect their respective domains, the original intent might be compromised. He pointed out, "There are questions about how to set the relationship between the Prime Minister-led National Data Policy Committee and the Ministry of Trade, Industry and Energy-led Digital Transformation Committee, and which law takes precedence between the basic law and the special law, including interpretations of the special law." He also expressed concerns about potential collaboration issues between relevant ministries in important sectors such as finance, medical care, and healthcare where data is critical.
In this regard, Jung Kwon, Director of the Industrial Technology Market Innovation Division at the Ministry of Trade, Industry and Energy, said, "The legislation of the Industrial Digital Transformation Act involves multiple entities in the process of data utilization and sharing, so please view it as minimizing legal uncertainties," adding, "The concept of use and profit rights is different from the Data Basic Act and is distinct from ownership."
He also explained that concerns about overlapping legislation are unfounded. Director Jung said, "The law was created through consultations not only with the Ministry of Science and ICT but also with the Ministry of SMEs and Startups, the Personal Information Protection Commission, and other ministries, so the contents do not conflict but complement each other," adding, "When creating guidelines, we will refer to the Ministry of Science and ICT's guidelines and coordinate sufficiently with other committees such as the Fair Trade Commission and the Personal Information Protection Commission before presenting them to the market."
The Ministry of Science and ICT also responded that it is merely an "untraveled path" and that there are no major problems. Kim Bo-kyung, Director of the Data Promotion Division, said, "Ultimately, the key will be how each ministry interprets issues when data disputes arise," adding, "At that time, we will cooperate closely to ensure that the principles and directions of both laws develop constructively and reduce market confusion."
Meanwhile, Professor Lee Sung-yeop of Korea University Graduate School of Technology Management, who chaired the discussion that day, said, "Since an environment has been provided to play the role of 'first mover' in the data economy, regardless of which government is launched, we need to leverage our strengths, and I believe the answer lies in data," urging, "I hope the National Data Policy Committee will serve as the center for close cooperation among the Ministry of Trade, Industry and Energy, the Ministry of Science and ICT, and the Ministry of the Interior and Safety."
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