Fri. Sep 22nd, 2023

Regulation HK

Financial Regulator

FSC Korea Issues ‘MyData Services’ Guidelines Ahead of August Launch

2 min read

The guidelines require participating firms to ensure consumers have sufficient awareness of their privacy rights when consenting to data transfers.

MyData is a government-led platform that allows consumers to manage credit data from different banks, credit card companies and insurance companies, as well as non-financial information, such as data on telecommunication and public utilities fees.

So far, the FSC has granted MyData business licences to over 50 firms, allowing them to offer financial advice to customers using the data made available through the MyData platform. The licenced firms will begin offering their services using standardised APIs beginning on 4 August 2021.

The new guidelines specify the types of consumer credit and financial data that can be provided through MyData services from a range of financial sectors, including credit finance and financial investment businesses, insurance businesses, credit card companies, and electronic financial services.

A further expansion on the types of consumer data available for MyData will be reviewed and decided in the future, the FSC said.

The guidelines require consumers to be given easy-to-understand language and visual illustrations to ensure they have sufficient awareness of their privacy rights when giving consent for data transfers.

To strengthen data protection, MyData firms will be required to make their service cancellation process easy and completely remove consumer credit data from their platforms when consent is denied or withdrawn.

MyData firms will be prohibited from offering excessive rewards in sales pitch to prevent excessive competition in the industry, and be subject a set of specific data security standards and suitability and vulnerability tests.

The guidelines also set out the process MyData firms and data subjects should undertake when conducting data transfers.

The FSC requires that data subjects have control over the specific types of data they want to transfer, and that data transfers must occur in real-time upon request.

A MyData support centre has been set up at the KCIS (Korea Credit Information Services) to facilitate seamless operations for both service providers and consumers. The centre will provide support for quick resolution of conflicts and consumer complaints through the MyData web portal.

The FSC said it will set up a taskforce in March to explore ways to further strengthen consumer rights in relation to MyData services.

A testbed for the system development and verification will also be established to ensure consumers are able to exercise their data transfer rights safely.

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