MyData Second Review Countdown... What About Improvements to the Review Suspension System?

[Asia Economy Reporter Kiho Sung] As financial authorities officially begin the schedule for the second round of MyData service approvals, the financial sector is accelerating its pace. The key issue in the second review is whether the suspension system during the review process can be changed, with significant changes expected depending on the outcome.

According to the financial sector on the 18th, the financial authorities held the "2nd MyData Approval Review Briefing" online on the 16th. This is a preliminary suspension work ahead of the submission of approval review documents for credit evaluation businesses related to MyData.

The Financial Supervisory Service (FSS) announced that it will start accepting approval applications on the 23rd and plans to accept applications regularly on the last Friday of every month thereafter. Reviews will proceed as applications are received, but the order of approval each month will be determined based on the adequacy of preparation rather than the order of submission. Additionally, companies that self-assess that they meet all approval requirements, including facilities and personnel, at the time of application can skip the preliminary approval and apply directly for the main approval.

Also, companies that self-assess that they meet all approval requirements, including facilities and personnel, at the time of application can skip the preliminary approval and apply directly for the main approval. Companies that fail the review can reapply. However, it was emphasized that since failure may negatively affect the company's reputation, it is necessary to apply for approval after thorough preparation.

In a preliminary demand survey conducted by the Financial Services Commission (FSC) in March, about 80 companies expressed their intention to apply. Considering the demand for the MyData business, the FSC plans to accept MyData business applications monthly starting from April.

The industry's focus is on whether the suspension system during the review process can be improved. Earlier, on the 13th, the FSC held the 2nd meeting of the Policy and Global Finance Subcommittee of the Financial Development Council to discuss directions for improving the suspension system during licensing reviews.

The suspension system is designed to halt procedures during new licensing and major shareholder change approval reviews if ongoing lawsuits, investigations, or inspections are recognized to have a significant impact. However, since the financial authorities find it difficult to predict the outcomes of lawsuits and investigations when such proceedings are ongoing, reviews are effectively delayed indefinitely, raising the need for improvements in the system's operation.

The review proposal reported by the FSC to the Financial Development Council includes three main points. First, to specify the criteria for suspension judgments by reason. Second, to mandate periodic reviews on whether to resume the review to prevent prolonged suspensions. Third, to conduct the review based only on facts revealed at a certain period after the suspension.

If the last proposal is adopted, companies like Samsung Card and Gyeongnam Bank are expected to have a path to undergo MyData business licensing reviews. Currently, Samsung Life Insurance, the major shareholder of Samsung Card, has received a severe disciplinary action from the FSS, but the FSC's decision is not yet final. BNK Financial Group, the major shareholder of Gyeongnam Bank, is undergoing a second trial.

The problem is that Kakao Pay, which is receiving the most attention, finds it difficult to find a workaround. It is still unclear whether legal sanctions are being imposed on Alipay Singapore Holding, the second-largest shareholder of Kakao Pay, so the review remains "in progress."

An industry insider said, "In a situation where investments from overseas companies are increasing, the situation of Kakao Pay inevitably attracts attention," adding, "The key is whether the authorities can make a flexible decision."

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