Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
ANALYSIS MyData services in trouble
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By Park Jae-hyuk
Mishap in Naver Financial's system update causes data leak
By Park Jae-hyuk
Financial information from approximately 100 Naver Financial customers was leaked earlier this week, while the internet portal operator's fintech arm was updating its system to start testing its “MyData” service, which enables financial consumers to manage all of their financial information in one place.
The data spill has fueled ongoing concerns over the government's plan to let financial firms offer the data-driven financial service starting next month.
According to Naver Financial, Thursday, information on bank, securities, credit card accounts of some of its customers and their transaction histories were exposed to other customers.
The company is considering compensation for the error, although it has denied any leakage of personal information, such as names and phone numbers.
“We sincerely apologize for revealing important information of our customers,” Naver Financial said in a message sent to its users. “We will do our best to prevent damage and the recurrence of similar accidents.”
Viva Republica, the operator of Toss mobile money transfer app, was also embroiled in a controversy recently for its violation of the government's guidelines on MyData services.
The fintech firm simplified the procedure for consent to the provision of personal information, under the pretext of customer convenience, but the financial regulator has mandated stricter procedures to prevent MyData licensees from using the information of their customers improperly. After the controversy, Viva Republica decided to revise its data collecting system.
Banks, brokerages and credit card issuers were warned about overheated promotions of their MyData services. The financial authorities have expressed concerns about the possibility of heated competition causing negligence in protecting the personal information of their customers.
Last month, KB Kookmin and Woori bank were forced to drop their plans to give Genesis vehicles to some users of their MyData services by drawing lots.
But still, the two banks and most other conventional financial institutions are trying to lure potential users to their MyData services with high-price gifts, including Gucci and Chanel wallets, iPad Pro tablets and luxurious hotel restaurant vouchers. The Financial Services Commission (FSC) delayed the official launch of MyData services to Jan. 5 from Jan. 1, citing the possibility of system failure caused by increased traffic volume on the first day.
“We accepted the opinion from industry officials that the launch should be postponed to a weekday,” an FSC official said.
The FSC also emphasized that it has taken various measures for safer MyData services.
“Last Thursday, we conducted a joint exercise with financial companies to check IT risks,” the regulator said in a press release. “We braced for the possibility of various risks, such as information leakage and system failure, and checked the system to prevent accidents.”