Additional designation of financial and non-financial data combining institutions in the first half of the year… It will be open to the public

Anonymous (pseudonym) information binding process

A ‘data specialized institution’ that anonymizes and combines data owned by financial and non-financial companies will be additionally designated during the first half of this year. It is expected that the area currently in charge of public institutions will be expanded to the private sector.

The Financial Services Commission held a regular meeting on the 12th and announced that it will receive applications from the 24th to the 25th of next month and designate a new data-specialized institution in the first half of this year.

A data specialized institution is a place that professionally supports data combination between financial companies and non-financial companies or between financial companies and financial companies, and evaluates the adequacy of anonymization of anonymous information. It was created by introducing the concept of anonymous and pseudonymous information in the revised Credit Information Act that came into force in August 2020 and allowing data binding through a data specialized agency designated by the government. The FSC designated four locations, the Korea Credit Information Service and the Financial Security Service on August 6, 2020, the National Tax Service on December 12, 2020, and the Korea Financial Telecommunications and Clearings Institute on March 8, last year.

For example, if A is a policyholder of insurance company B and a customer of automobile company C, A’s name, etc. is not anonymized, but insurance coverage, accident frequency, vehicle black box and airbag presence, etc.; This is a method in which B and C receive the combined information through a data specialized agency.

The FSC decided to designate a specialized institution that can promote competition in the data industry, saying that institutions with a large amount of data are likely to accumulate more data and accelerate monopoly in the process of combining data. Institutions that can secure social trust, and institutions with excellent work competency and performance in related fields, were also selected for selection.

In July last year, the government held a joint pseudonymous information performance report meeting with the relevant ministries presided over by the Prime Minister and announced that it would designate additional data-specialized institutions. At the end of last year, Shinhan Card revised its articles of incorporation to add ‘data-specialized institution business’ to its business purpose. BC Card is also said to be highly likely to file an application for a new data agency.

On the other hand, the role of combining information between non-financial companies is handled by a specialized agency, and currently 20 are designated.

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