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
FIN-FSA Announces Timeline for Workbooks Under EBA DPM 2.9.1.1Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
