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
- 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
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