April 27, 2024

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[THE INVESTOR] The government will soften regulations on information about financial transactions and services in a bid to promote fintech that uses big data analytics, officials said on March 19.

Financial Services Commission Chairman Choi Jong-ku said the government has decided to allow private firms to gain access to some credit information while minimizing risks of privacy and data breaches.

Under the move, financial authorities will allow private financial firms and research companies to collect data on people’s financial transactions, including their history of debt-repaying ability and car insurance, from the second half of this year.

Currently, a broad array of such massive data is stored at two state-run institutions -- the Korea Credit Information Services and the Korea Insurance Development Institute.

The two state-run institutions have the financial data of some 35 million people, according to the FSC.

Financial authorities will randomly select about 2 percent of the data, or some 740,000 people, and provide it to private firms, FSC officials said.

Such a database will be used by private firms to develop consumer-oriented financial products, the FSC said.

In a statement, Choi said big data technology is a new driver of innovation for the financial sector, adding that the government aims to promote the financial industry as a test bed for the big data industry.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)