Toss, KakaoPay, Finda, and Others to Pay MyData Transfer Fees Starting Next Year

68 MyData Operators to Pay Fees to Banks Starting Next Year
End of Data Free Riding... Calculation Standards to Be Established Within the Year

Starting next year, 68 MyData service providers such as Toss, KakaoPay, Naver Financial (Naver Pay), Finda, and BankSalad will have to pay fees to financial companies including commercial banks, secondary financial institutions, insurance companies, securities firms, and lending companies in exchange for receiving data.

On the 6th, the Financial Services Commission announced the charging principles for MyData information transmission costs. The FSC stated, "The fees will be set at a level that compensates for the appropriate costs necessary for regular information transmission," adding, "The appropriate costs will be determined at a minimum level according to the law, based on the system construction and operating expenses required for information transmission." However, considering the characteristics and stages of MyData providers such as early startups without revenue models, partial fee reductions may be allowed. The FSC plans to revise the 'Credit Information Business Supervision Regulations' to include these provisions.

Data transmission costs have been an issue in the financial industry since the launch of the MyData business in January last year. The current credit information law specifies that "the provider of information can charge the recipient." Nevertheless, MyData providers have expressed concerns that paying fees could increase costs and hinder the launch of innovative services. On the other hand, data providers such as banks have demanded fees, arguing that MyData providers are receiving data for free and operating as free riders.

A representative from a commercial bank said, "Banks are both data transmitters and MyData providers, so they are also data users," and added, "The MyData business, which started last year, has been sluggish, but from next year, we are in a situation where we need to endure by receiving fee income and find a way forward." The FSC also expressed the view that "charging fees is necessary for the sustainability of the MyData business." Shin Sang-rok, Director of the Financial Data Policy Division, stated, "As of 2022, the total cost of data transmission reached 129.3 billion KRW."

The Korea Credit Information Services will be responsible for calculating the fees. A council consisting of industry experts, academia, accounting professionals, the Korea Financial Telecommunications & Clearings Institute, and the Financial Security Institute will be formed to determine the fees within this year. Director Shin said, "The fees will be applied starting in 2023 and will be paid in installments from 2024," adding, "The Korea Financial Telecommunications & Clearings Institute will handle integrated collection and payment."

Kim Kang-san, Legislative Research Officer of the Financial Fair Trade Team at the National Assembly Legislative Research Office, said, "If MyData fees are implemented from next year, the launch of MyData services may be restrained, especially among small and medium-sized providers with limited financial resources," and suggested, "There are options such as capping the fees for this year's charges and applying differential fees based on providers' revenue, asset size, and number of calls, considering their financial burden and business conditions."