FSC on Financial Data Exchange Platform and Credit Information Act
FSC notified that a kick-off meeting to develop a vibrant data exchange ecosystem in the financial industry was held in January 2020. The government established a public-private joint council in preparation for the pilot launch of a financial data exchange platform in March this year. The data exchange platform will offer a one-stop service and provide innovative data exchange solutions while ensuring the security and safety of data transactions. Additionally, FSC notified that the National Assembly passed the revision bill on the Credit Information Use and Protection Act on January 09, 2020. The revision bill provides a legal basis for the use of big data and the commercialization of new innovative services and is expected to introduce a score-based credit rating system within this year. The effective date for the revision is six months from the promulgation.
The data specialized agency will handle data convergence, evaluate the appropriateness of "pseudonymized" information, and ensure safety and security in data exchange. A public-private joint council led by FSC and composed of financial institutions and fintech firms will operate three working groups on supply and demand, guidelines, and policy support. The working group on supply and demand will assess the supply and demand of financial data in different sectors and companies. The group on guidelines will establish standards on procedures, contract formats and pricing in data exchange; and the policy support working group will focus on areas of policy improvements and measures to promote data exchange.
To continue to promote data economy, FSC will work on a seamless implementation of the follow-up measures.
- Work on successful launch of MyData businesses by operating working groups to establish standards for the scope of data usage, security, and authentication and authorization measures
- Establish measures for information security by improving the current information usage and management evaluation system for financial institutions and upgrading the information use consent form
- Set up big data infrastructure to support the creation of data ecosystem in financial sectors, including establishing a data exchange in the first quarter of 2020 to promote data distribution through which non identifiable data and company information can be exchanged; making available a wide array of quality data through CreDB, a financial big data open system operated by the Korea Credit Information Services since June 2019; and designating and operating data special institutions institutions in the third quarter of 2020 to support safe and efficient data conversion activities between companies
- Introduce a score-based credit rating system within this year to address problems arising from the current standardized credit evaluation system
- Develop measures in the first quarter of 2020 to support small merchant financing using big data platform
Related Links
- Press Release on Data Exchange Platform (PDF)
- Press Release on Revised Bill on Credit Information Act (PDF)
Keywords: Asia Pacific, Korea, Banking, Insurance, Securities, Data Exchange Platform, Data, Credit Information Act, Big Data, Fintech, Credit Rating System, Credit Risk, FSC
Previous Article
HKMA Consults on Stay Rules on Financial Contracts Under FIRONext Article
APRA Publishes Submission on Fintech and RegtechRelated Articles
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
OCC Identifies Operational Risk Deficiencies in MUFG Union Bank
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
EC Rule on Contractual Recognition of Write Down and Conversion Powers
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
ECB to Consider Climate Risks When Reviewing Collateral Framework
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
SRB Provides Update on Approach to Prior Permissions Regime
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
APRA Issues Further Guidance on Application of Securitization Standard
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
ACPR Publishes Corrective Version of RUBA Taxonomy
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
