'Big Data Alliance' Emerges... SKT, Shinhan Card, and Others Build Korea's First Private Data Dam

[Asia Economy reporters Seulgina Jo and Hayoung Ki] "The top data companies have come together."

SK Telecom, Shinhan Card, and other leading domestic companies have embarked on building a 'private data dam.' This initiative is expected to accelerate the national data economy while providing customized services to customers and promoting innovative businesses by combining and analyzing data across a wide range of fields.

According to SK Telecom on the 4th, the company will sign a data cooperation memorandum of understanding (MOU) centered on forming a 'Private Data Alliance' with Shinhan Card, Korea Credit Bureau (KCB), GS Retail, Real Estate 114, and others in mid-June.

The companies participating in this alliance share the commonality of being the top data holders in their respective fields, including SK Telecom, the number one mobile carrier. KCB holds credit information on 44 million people. GS Retail and home shopping also possess some of the highest-level distribution data in Korea. As an open alliance, participation from key companies in sectors such as automotive, manufacturing, fashion, and medical, as well as data analysis specialized institutions and system and solution companies, is expected in the future.

This is the first time private companies are leading the construction of a data dam. These companies aim to create new value by gathering and utilizing various pseudonymized information (information processed so that specific individuals cannot be identified) such as distribution, manufacturing, credit, and transportation data held by each company in one place. They also plan to offer 'pseudonymized information combined data products' and 'data-based subscription services' going forward.

SK Telecom explained, "For example, by de-identifying and combining SK Telecom Geovision's floating population data with Shinhan Card's consumption information, highly advanced data products can be created in desired fields." This is expected to directly aid companies' product development, marketing strategies, and future market responses reflecting market trends.

Jang Hongseong, head of SK Telecom's Advertising and Data Company, emphasized, "By joining forces with Korea's top data companies to build a private data dam, we will open a new chapter in the domestic data industry." Shinhan Card evaluated this as "a significant stepping stone for the development of the domestic data industry."

This content was produced with the assistance of AI translation services.