MyData Focused on by the Three Major Telecom Companies... What Is the Scope of Its Use?

[Asia Economy Reporter Lim Hye-seon] Telecommunications companies are focusing on the personal credit information management business (MyData).

SK Telecom was the first to obtain the official license for the personal credit information management business (hereafter MyData). SKT aims to differentiate itself from existing MyData operators by providing customers with new lifestyle-oriented customized services using telecommunications data and financial data. In the second half of this year, SKT will launch an AI-based financial health diagnosis service that automatically assesses an individual's asset management status and proposes prescriptions for asset management. To this end, SKT collaborated with the Korea Financial Planning Association to develop a mobile environment-specialized financial diagnosis tool that has undergone academic guidelines and verification by Certified Financial Planners (CFP).

KT and LG Uplus have also recently obtained preliminary permits for MyData and applied for official licenses. KT plans to provide hyper-personalized services by combining telecommunications, financial, and credit information. LG Uplus plans to offer differentiated financial services such as integrated asset management and expenditure management services by utilizing MyData.

What is MyData?

Known as a "financial secretary in your hand," MyData is a service that helps consumers easily manage their credit information (such as financial product subscription details and asset status) scattered across various institutions like financial companies and public agencies at a glance. The data management focus has shifted from institution-centered to individual-centered. Individuals can provide companies with information about their consumption tendencies and asset status to receive recommendations for customized financial products or services. The MyData service has been implemented since the amendment of the 'Data 3 Act' in August 2020.

The 'Data 3 Act' refers to the amendments to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act. While the original laws aimed to protect personal data securely, the amendments focused on easing excessive regulations and expanding the scope of information use by individuals and companies.

According to SK Telecom, the core content of the Data 3 Act is the introduction of the concept of 'pseudonymous information.' Pseudonymous information is data processed securely so that specific individuals cannot be identified without combining additional information. It allows the use of pseudonymous information for research and development, market research, and commercial statistical purposes without individual consent. The personal information protection system was also refined. The personal information protection supervisory agencies, which were dispersed across various government bodies, were integrated into a single 'Personal Information Protection Commission.'

Photo by SKT

Services Utilizing MyData

Open banking was only able to connect fintech companies and banks. MyData connects data from securities companies, insurance companies, real estate, public institutions, and more.

Last year, SKT signed a business agreement for data cooperation with telecommunications, card, and credit companies. It formed Korea's first 'Private Data Alliance' and built a 'Private Data Dam.' Additionally, SKT, along with Shinhan Card and Korea Credit Bureau (KCB), decided to activate the private data dam project called 'GranData' and recently held a seminar. At this seminar, the three companies presented various research possibilities through pseudonymous data linkage in GranData. The GranData project plans to continuously expand participating companies in an open alliance format.

TKS (SKT Enterprise Kubernetes Solution) is a container solution that enables easy and fast deployment and scalability of business applications in multi- and hybrid-cloud environments, succeeding the existing TACO. When MyData service access surges and there is a risk of server downtime, TKS automatically increases the service server capacity on behalf of administrators to resolve the issue. TKS has been applied as a differentiated solution in supporting and building services for SKT and other MyData operators.