Monthly Archives: July 2020

Development of South Korea’s Latest Consumer Credit Information Legislation in the Digital Economy

PCCM 2020-07-30

The South Korea government approved the revisions to the enforcement decree of the “Credit Information Use and Protection Act ” at a cabinet meeting on July 28,2020,which marks the final legislative changes necessary for the promotion of a data-driven economy and digital new deal initiative. 



Data convergence will be safely carried out by designated institutions specifically tasked with data convergence. Data specializing institutions shall provide pseudonymized and anonymized data to financial institutions. 

Data specializing institutions are required to maintain an appropriate level of human resources and set up a risk management system and internal control mechanisms. 


More fintech firms will be given opportunities to start their own credit bureau businesses as the revisions restrict the required number of data specialists to maximum 10 professionals even for business entities wishing to apply for multiple CB licenses. 

In addition, new guidelines will be established to prohibit unfair practices by credit bureaus, such as discriminatory or preferential credit rating, etc. 


New rules have been established to guarantee that MyData service providers are abiding by data privacy rights and data transfer rights of consumers. 


Financial companies will be required to inspect and report to the financial authority at least once every year the results of inspection for internal data management and protection status. 

Further impact

  The implementation order of this law will promote the emergence and development of new industries such as My data and non-financial credit reporting; and by promoting data collection, processing, and combination, create high-quality data-related job opportunities;

   Through the creation of new non-financial credit reporting and self-employed credit reporting, data can be expanded and a dedicated credit rating system can be constructed to solve the disadvantages of those who lack financial transaction history and self-employed individuals (self-employed) in credit evaluation an increase the reach of finance.

  The Personal Information Protection Law, the Credit Information Law, and the Information Communication Network Law are the three data laws revised in the future in South Korea, which will promote the use of big data and data integration, provide one-to-one financial services to consumers based on data, and accelerate innovative financial services Development.

PCCM Review  

South Korea is a country with relatively developed credit reporting, with a market-oriented mechanism and a good legislative environment, which is worthy of reference for the construction of a new credit reporting system.

South Korea has actively promoted the construction of a credit system since 1980, and many laws will involve credit , and the “Credit Information Use and Protection Act” (abbreviated as “Credit Information Act”) enacted in 1995 can be regarded as The “constitution” in the field of credit reporting.

According to the needs of the digital economy era, South Korea has appropriately revised its credit reporting legislation to keep pace with the times. In a short period of less than 30 years, the “Credit Information Act” has updated many contents and several versions, and its updated contents accounted for a quarter of the entire law. And in recent years, with the rapid development of the big data industry and the tightening of global personal information protection, Korean personal credit reporting system has followed up quickly.

This legislative amendment addresses key issues: data protection and the promotion of innovation & development are simultaneously promoted. On the one hand, it strengthens information security and consumer privacy protection, and on the other hand, it reduces the barriers to entry of new credit reporting business.

The MyData industry in South Korea is an emerging industry in the digital economy. The South Korean government promotes the development of the industry through relevant legislation such as personal credit reporting. There is also an imaginative business space for China’s huge consumer market. The future progress is worthy of attention.

Background: Consumer credit reporting in South Korea

 According to the evaluation of the International Finance Corporation (IFC), South Korea’s personal credit reporting industry level surpasses OECD countries in its breadth (coverage rate) and depth (technology, model), and ranks as the first level in the world with Britain, the United States, and Germany.

   In the early development of the Korean credit reporting industry, the government led the development of the personal credit reporting (PCR) industry. By the beginning of 2000, the Private Credit Bureau (PCB) developed rapidly and began to dominate the entire Korean personal credit reporting market. By 2010, it entered the mature stage.

    The personal credit reporting market in South Korea is mainly composed of three personal credit reporting agencies-NICE, KCB and SCI. Its supervisory agency is the Financial Supervision Institute (equivalent to a combination of  China Banking and Insurance Regulatory Commission[CSRC], and China Securities Regulatory Commission[CSRC]).

About the author

Liu Xinhai is the Executive Deputy Director/Researcher of the Credit Management Professional Committee(PCCM), CMAA, China.

An Guangyong is an expert member of the Credit Management Professional Committee (PCCM), CMAA, China. He has ever worked in one credit bureau of South Korean

Resource Link

Two main credit bureaus in China sign a strategic cooperation agreement

PCCM, 2020/7/22

On July 17, 2020, the Credit Reference Center (CRC)of the People’s Bank of China(PBOC) and Baixing Credit Co., Ltd. (Baixing Credit) formally signed a strategic cooperation agreement. Jianhua, Chen Secretary of the Party Committee of CRC, and Huanqi, Zhu Chairman of Baixing Credit, attended the signing ceremony. Zhenzhong, Wang deputy director of CRC, and Pengpeng, Liu vice president of Baixing Credit Information, signed the contract on behalf of both parties.

   According to the agreement, the two institutes will actively carry out credit reporting strategy, business, and technical cooperation research under the premise of compliance with laws and regulations and guaranteeing information security, and effectively play the role of “government + market” to jointly promote the prosperity and development of my country’s credit reporting market. 

In accordance with the design of the PBOC on China’s credit reporting market, the two institutions have achieved differentiated development, adhered to the principles of mutual benefit and gradual progress, and jointly explored innovations in cooperation mechanisms, enhanced the innovation capabilities of both institutes’ credit reporting services, and jointly created and maintained a fair market environment. At the same time, both parties will strictly implement the relevant provisions of the 《Regulations on the Management of Credit Reporting Industry》to effectively protect the rights and interests of information subjects (Especially Consumers).

PCCM Review: It’s a good news. The development of China’s credit reporting industry requires resource integration, cooperation and sharing.

About The Credit Reference Center(CRC), the People’s Bank of China

CRC was established in March 2006 with the approval of the State Commission Office of Public Sectors Reform. As an independent credit information service institution under the People’s Bank of China (PBC), the Center’s mandate is to establish, operate and maintain the national centralized commercial and consumer credit reporting system.

About Baihang Credit


Baihang Credit Co., Ltd. is the first company in China that has obtained a consumer credit reporting business license. It is organized by National Internet Finance Association of China and eight market institutes, including Zhima Credit, Tencent Credit, Qianhai Credit, Kaola Credit, Pengyuan Credit, Zhongchengxin Credit, ZhongzhichengCredit Report, and Huadao Credit. The company was incorporated in Shenzhen on March 19, 2018 and settled in Futian, with a registered capital of 1 billion Yuan.

Resource Link

CTOS,Malaysia, Acquires CIBI Information Inc. Philippines


UALA LUMPUR: CTOS, Malaysia’s leading credit reporting agency, has today announced its acquisition of CIBI Information Inc (CIBI), the Philippines’ first and most established credit reporting agency.

CTOS said the acquisition marked its first regional investment, and a critical first step in its expansion into Asean.

“CTOS has cemented its position as Malaysia’s leading credit reporting agency, with a broad suite of innovative products and services developed in Malaysia over our 30-year history.

“This acquisition is a first key step towards bringing our products, solutions and knowledge across Asean,” CTOS group chief executive officer Dennis Martin said in a statement today.

He said the deal was strategic, both in terms of the company and the market.

“While the fintech scene in the Philippines is active, credit bureau services are still at their infancy, creating a gap that needs to be filled as the country’s adult population of over 60 million embraces new financial products and services.”

There is significant room for growth, with CTOS projecting topline growth of between 20-30 per cent compounded annual growth rate at CIBI over the next five years.

CIBI president and CEO Marlo R. Cruz said the deal would allow it to benefit from CTOS’ resources, technology and vast experience to effectively expedite its goal of supporting the unbanked/underbanked, micro-SMES and the direct-to-consumer market segments in the Philippines.

In terms of talent and knowledge, Martin believes that the transfer will be mutually beneficial.

“CIBI is traditionally a business and people information provider, and they are also heavily involved in employment vetting, which is a sector that is new to us.

“As a local Filipino” company, they also have invaluable insights to their market that multinationals don’t,”

Brahmal Vasudevan, founder and CEO of private equity firm Creador, majority shareholder in CTOS, said its aim when investing in CTOS in 2014 was to make Malaysia a centre of excellence for credit reporting in Asean.

PCCM Review:

(1) The cross-border M&A of consumer credit reporting agencies occurred between emerging market countries, rather than the traditional mergers and acquisitions of European and American credit reporting agencies in emerging market countries.

(2) Mergers and acquisitions between institutions are relatively common in the field of consumer credit reporting. Through mergers and acquisitions, different resources are integrated to seize the market, and eventually the rapid development of personal credit reporting agencies is achieved.

(3) Mergers and acquisitions in China’s consumer credit reporting industry are relatively rare. In the future, with the further development of marketization and the opening up of foreign investment, there may be occurrences.

Resource Link from BIIA

Resource Link from NST Business