AI to Request Interest Rate Cuts and Apply for Policy Funds... MyData Now Available for Small Business Owners Too

Financial Services Commission Announces Plans for Advancing MyData in the AI Era

Financial authorities are set to expand MyData services, which have traditionally centered on individuals, to also include self-employed individuals and small business owners. In line with the era of artificial intelligence (AI), the authorities are also pushing forward with the introduction of services that would allow AI to exercise certain financial rights on behalf of consumers, such as requesting interest rate reductions.

On August 25, the Financial Services Commission, chaired by Vice Chairman Kwon Dae-young, held the second meeting of the "Personal Credit Information Consent System Reform Legal Advisory Panel" and announced these plans for advancing MyData services. The meeting also discussed trends in personal information regulation reform in Japan and the European Union, as well as issues with the personal credit information consent system experienced by the financial sector in practice.

Since its introduction in 2022, the MyData service in the financial sector has enabled service users to collect and consolidate personal credit information held by financial companies, allowing information owners to view and inspect all their data in one place. As of the end of July, 57 operators were in business, with a cumulative total of approximately 190 million service registrations (including duplicates) and around 16 billion transmissions of information. The Financial Services Commission aims to develop the service further to support people's daily lives and livelihoods in the AI era.

First, the scope of the right to request transmission of personal credit information and the recipients of MyData services under the Credit Information Act will be expanded from the current "individuals" to "all credit information principals." This will allow self-employed individuals and business owners to consolidate financial, commercial, and public information, which is currently scattered across various organizations, and give them a platform to manage this information more effectively.

The authorities are also considering ways for MyData operators to exercise financial rights on behalf of consumers. This could include the right to request interest rate reductions, the right to debt adjustment, applications for remedies against voice phishing, various policy fund applications, refinancing applications, and searching for and claiming unclaimed insurance benefits, among others.

In particular, the introduction of a "blanket prior consent" is also being considered within clear service boundaries so that AI agents can take timely actions in the best interests of financial consumers, specifying the purpose, scope, method, and period. However, blanket consents with ambiguous coverage such as "the entirety of services provided" or "all partner services" will be prohibited.

The regulatory framework for MyData operators' ancillary work will also shift from the current positive list approach to a negative list approach. As long as they obtain the necessary licenses and approvals under other laws and there are no conflicts of interest or adverse impacts on information owners, MyData operators will be allowed to offer a wider range of services.

The types of data available for MyData business operators will also be expanded. The information previously provided mainly by banks, credit card companies, financial investment firms, and insurers will be broadened to include virtual assets and policy finance, increasing the usefulness of comprehensive asset management services. The authorities are also pushing for the introduction of a "joint personal credit information utilization system," whereby affiliates and strategic partners can share information with prior, clear notification to information owners regarding the purpose, items, and management responsibility for the use of such data.

Additionally, the Financial Services Commission will implement stronger safeguards in line with the expanded use of MyData. The authorities will establish "MyData Consolidation and Utilization Guidelines," and introduce obligations for business operators to explain and keep records when using AI agents. They will also work with the financial sector and related organizations to develop a governance system for verifying the security of AI models and responding to hacking and other security incidents.

A Financial Services Commission official said, "We will gather opinions widely from financial consumers, industry participants, related institutions, and experts to prepare a proposed amendment to the Credit Information Act and proceed swiftly with legislation." The official also stated, "Even before the legal amendments are enacted, we will actively consider pilot operations by granting Innovative Financial Service status to qualified business operators."

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