MyData Second Review Begins... Improvement of Review Suspension System Remains a Task

[Asia Economy Reporter Kiho Sung] Financial authorities have resumed the second round of licensing reviews for the Personal Credit Information Management Business (MyData), scheduled to be implemented in August. However, improvements to the suspension system for reviews, considered the biggest variable, are still under discussion.

According to the Financial Services Commission on the 24th, 31 companies, including Industrial Bank of Korea, Kyobo Life Insurance, and LG CNS, submitted applications for the second review. Twenty-five applicants submitted preliminary license applications, and six applicants submitted final license applications directly.

By sector, there are 20 financial companies (4 banks, 4 insurance companies, 10 financial investment companies, 2 card and capital companies), 2 credit rating agencies (CB), 8 fintech companies, and 1 IT company. Among banks, Industrial Bank of Korea, Jeonbuk Bank, and Daegu Bank submitted preliminary license applications, while Gwangju Bank applied for the final license. Among insurance companies, Kyobo Life Insurance, Shinhan Life Insurance, KB Insurance, and Meritz Fire & Marine Insurance applied. Financial investment companies such as Kiwoom Securities, Korea Investment & Securities, and NH Investment & Securities submitted preliminary license applications, while December & Company Asset Management applied for the final license.

Among card and capital companies, Lotte Card and KB Capital submitted preliminary license applications, and NICE Information Service and KCB applied for the final license. Among fintech companies, Kona I, UbiVelox, and six others submitted preliminary license applications, while BangQ and IGnet applied for the final license. LG CNS submitted a preliminary license application as an IT company.

From the second review onwards, a ‘two-track review’ system was introduced, allowing companies that meet the licensing requirements to apply directly for the final license. The second review proceeds with both preliminary and final license tracks. Generally, companies apply for the final license after receiving the preliminary license, but companies that judge they meet all licensing requirements, including facilities and personnel, can skip the preliminary license and apply directly for the final license.

Companies that fail the review can also reapply. However, the Financial Supervisory Service advised that failure may negatively affect the company's reputation, so applicants should prepare thoroughly before applying. Reviews are conducted in the order of receipt, but the order of granting licenses is determined considering the adequacy of preparation.

However, improvements to the review suspension system, which the financial authorities are discussing, remain an unresolved issue. In particular, Kakao Pay, which is facing major shareholder eligibility issues, has suspended related services for two months due to this problem. However, since reviews will be conducted monthly going forward, if the financial authorities reach a certain conclusion, Kakao Pay is expected to participate in the review immediately.

This application will undergo a review by the Financial Supervisory Service to determine whether it meets the licensing requirements under the Credit Information Act, and the Financial Services Commission will decide on the license. Furthermore, to ensure maximum opportunities for applicants wishing to obtain licenses, applications will be accepted regularly every month. The next license application deadline is the 28th of next month.

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