FSS: "MyData, Strict Management Required for Unhealthy Business Practices Involving Minors"

FSS Holds CEO Meeting with MyData Operators
Emphasis on Strengthening Data Protection, Conflict of Interest Prevention, and IT Security
Active Support for Industry Innovation and Enhanced Consumer Rights

The Financial Supervisory Service (FSS) has urged MyData operators to pay close attention to key core tasks such as financial data processing and protection measures, conflict of interest prevention systems for platform services, and IT operation and security controls in relation to the MyData 2.0 system, which will be fully implemented starting this year.

On the afternoon of the 20th, the FSS announced that it held a meeting with CEOs of MyData (personal credit information management) operators at the FSS office in Yeouido to discuss current issues.

This meeting was the first CEO meeting held for small and medium-sized fintech MyData operators. It was organized to explain the main supervisory directions, recent regulatory amendments, and current issues.

The FSS urged the establishment of financial data processing and protection measures to prevent the misuse of personal credit information. In particular, it instructed thorough management to prevent unhealthy business practices such as infringement of minors' information sovereignty and unfair product solicitation during face-to-face sales.

It also emphasized that MyData operators must establish a conflict of interest prevention management system for the platform service algorithms they operate. Prior to service launch, it requested strengthened pre-verification to ensure that there are no elements in the source code that restrict or distort consumers' freedom of choice.

Furthermore, the FSS requested efforts to strengthen internal controls to prevent information leakage during the process of providing personal credit information to third parties and exercising the right to transmission requests.

The FSS plans to actively support the creation of an innovative growth environment by continuously listening to the industry's difficulties and suggestions and preparing improvement measures for the system. It will also prepare and share with the industry an 'internal control self-checklist' regarding important legal compliance matters necessary for conducting MyData business.

The FSS stated, "We plan to actively communicate with the industry to promote 'financial service innovation' and 'enhancement of financial consumer benefits' and improve regulations necessary for digital innovation," adding, "We will establish a data-based continuous monitoring system to prevent infringement of consumer rights and potential accidents."