"Data Leaders United" SKT, Shinhan Card, and Others Build Korea's First 'Private Data Dam'

[Asia Economy Reporter Joeslgina] SK Telecom announced on the 4th that it will form a ‘Private Data Alliance’ together with top-level data companies in telecommunications, card, and credit sectors, and based on this, it will embark on building the country’s first ‘Private Data Dam’.

SK Telecom plans to sign a memorandum of understanding (MOU) on data cooperation with leading data holders in each field such as Shinhan Card, Korea Credit Bureau (KCB), GS Retail, and Real Estate 114 by mid-this month. Going forward, the data alliance will be operated as an open platform, leading the data dam market through ultra-collaboration with various partners.

The companies participating in this alliance share the commonality of being the top data holders in their respective fields. These companies expect to create new markets through a private data dam that gathers pseudonymized information (information processed so that specific individuals cannot be identified) held by each company in one place. It is explained that it will be a space where diverse private sector data such as distribution, manufacturing, transportation, and accommodation are collected, combined, analyzed, and distributed to create new value.

In the future, the ‘Private Data Dam’ will provide ‘pseudonymized combined data products’ and ‘data-based subscription services’ that directly assist decision-making such as product development based on market trends and data-driven demand forecasting for companies.

SK Telecom explained, “For example, in the ‘Private Data Dam,’ when SK Telecom GeoVision’s floating population data and Shinhan Card’s consumption information are pseudonymized and non-identifiably combined, it will be possible to create much safer and more advanced data products in desired fields than before.”

Specifically, by combining mobility, consumption, and distribution information, it is possible to analyze the consumption patterns of car owners by brand and obtain analysis results on which car owners have a higher tendency to consume at department stores. Companies can use this data to conduct effective targeted marketing across various channels.

Starting with the construction of this private data dam, SK Telecom expects to contribute not only to innovative public policy formulation through close cooperation with government-led data projects but also to big data and artificial intelligence (AI) research. By providing small business owners in local commercial districts with information on consumption characteristics and preferences by industry of nearby residents and visitors, it is anticipated to help activate data-based businesses for small merchants and startups by offering guidance on marketing timing and methodology.

Jang Hongseong, Head of Advertising and Data at SK Telecom, said, “By joining forces with Korea’s top data companies to build the ‘Private Data Dam,’ we will open a new chapter in the domestic data industry.”

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