Wed. Feb 1st, 2023

Regulation HK

Financial Regulator

Korea to Start Charging for Use of Open Banking Platform

2 min read

The FSS will develop billing standards and retroactively calculate fees MyData service providers will have to pay in 2024 for their usage in 2023.

South Korea’s FSS (Financial Supervisory Service) has announced plans to start charging MyData service providers for this year based on the amount of data transmission they require.

Launched in January, MyData is Korea’s version of open banking – supported by an API-based government-led platform that allows consumers to manage data from different financial and non-financial institutions in one place – including information about account balances, loans and insurance policies.

Specific billing standards will be prepared after December 2023 after additional analysis and verification of data transmission costs in 2023, the FSS said, adding that discussions from a working group which will include information providers, MyData operators, and related experts will also be considered.

The FSS said that it has analysed the cost of data transmissions over the nine month period following the launch of MyData, however it requires more cost data to establish more accurate and detailed billing standards.

“It is necessary to fully consider factors such as cost fluctuation factors, such as lack of data and additional costs incurred by information providers due to the expansion of the scope of MyData information provision in 2023,” the FSS said.

The cost of building the MyData system was KRW 186 billion, which will be depreciated at KRW 37.2 billion over five years – the cost of which will be applied to the financial industry. The operating cost of the system is KRW 92.1 billion per year.

The FSS said the billing amount for 2023 will be retroactively calculated according to specific billing standards, and will be paid in installments from 2024.

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