Startup Industry: "MyData Could Worsen Innovation... Privacy Concerns Also Raised"

"Could Become a Target for Corporate Trade Secret Information Transmission"
Personal Information Commission "Under Extensive Policy Review"

Recently, the Personal Information Protection Commission's plan to expand the 'MyData' (right to personal data transfer) policy has raised concerns within the startup industry due to fears of industrial contraction and other issues.

On the 4th, six organizations including the Korea Internet Corporations Association, the Privacy Protection Law Society, the Venture Business Association, Startup Alliance, Korea Startup Forum, and the Korea Women Venture Association held a discussion forum related to MyData.

Han Sang-woo, chairman of the Korea Startup Forum, stated, "Startups invest enormous costs and efforts to build data, but with the introduction of the right to personal data transfer, there could be situations where this data must be provided to competitors," adding, "This could weaken the driving force of innovation and hinder the growth of data-based industries."

He further explained, "If measures to protect data, which is a core asset of startups, are not established, the future of the data industry will become uncertain," and "If sensitive personal information is leaked during the data transfer process, it could lead to serious issues such as privacy violations."

Chairman Han also emphasized, "There is concern that domestic companies may face reverse discrimination as global companies enter the domestic market," and "In a situation where China's massive e-commerce platforms dominate the domestic market, if regulations on them are not properly enforced, domestic companies will be placed at a disadvantage."

Professor Jeong Shin-dong of Hankuk University of Foreign Studies Law School also expressed opinions on the leakage of sensitive information. He argued, "If consent is given broadly for data transfer, there is a very high possibility that sensitive information such as purchase histories that individuals want to keep private could be leaked," and "Since information that qualifies as corporate trade secrets or borderline information could be subject to transfer, caution is necessary."

The Personal Information Protection Commission announced last month a draft amendment to the Enforcement Decree of the Personal Information Protection Act to gradually expand MyData from next year to all sectors including healthcare, telecommunications, and distribution, and is currently collecting opinions.

However, concerns have been raised that startups may face cost issues such as operating separate servers to exchange information under this policy.

In response, the Personal Information Protection Commission explained, "For information transmitters in the distribution sector, specific criteria will be set by notification for those with sales of 150 billion KRW or more or with over 1 million data subjects," adding, "In future notifications, the scope of mandatory data transfer will be limited to large online general shopping malls or open markets based on the number of transaction items and sales in the distribution sector, so small and medium-sized enterprises or startups will not be subject to mandatory transfer and thus will not bear any burden."

They added, "MyData will enable personal information, which was previously confined to certain large corporations, to be moved and utilized according to citizens' demands, providing small and medium-sized enterprises and startups with opportunities to receive data and create innovative services and new business opportunities."

On the day, Hwang Ji-eun, head of the government-wide MyData promotion team at the Personal Information Protection Commission, said, "We hold the position that the data transfer infrastructure itself should be promoted gradually and step-by-step," and "Starting from places where existing infrastructure is available, we are beginning with three areas: healthcare, telecommunications, and distribution."

She continued, "Regarding concerns about the exposure of trade secrets, we are conducting extensive policy reviews," and "Since last year, we have been operating a consultative body for collecting opinions involving both data transmitters and receivers, and we will prepare a forum for discussions when expanding to other sectors beyond healthcare, telecommunications, and distribution."

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