ASIA-PACIFIC Trends and Developments Contributed by: Zhenming Guan, Joint-Win Partners
Compared with China’s path, Japan emphasises transparent processes and informed subjects, and the guidance released by its Personal Information Protec- tion Committee provides detailed operation regula- tions for cross-border data flow. China’s Twenty Arti- cles on Data lays more stress on framework design, while the specific operation regulations are left to be improved. Meanwhile, South Korea’s “MyData” highlights the right to data self-determination, with laws explicitly granting information subjects the right to directly man- age, control and share data – creating a contrast with China’s “three-right separation”. Generally, South Korea puts the accent on personal dominance, where- as China concentrates more on the structural division of rights and interests among all parties. Future development prospects of China’s credit reporting industry Based on the international comparisons and the guidance of Twenty Articles on Data , the future devel - opment of China’s credit reporting industry can be strengthened in several areas. In terms of data prop- erty rights utilisation, the range of data collected shall be expanded to include diverse data sources such as public data and enterprise data. It is also impor- tant to understand industry demands, innovate credit reporting products, clarify rules for scenario-based utilisation of credit data, establish credit data service licensing and regulatory mechanisms, and grant credit data subjects the right to be forgotten. To foster trading market integration, it is necessary to push forward the interconnection of local credit reporting platforms and unify data standards and trad- ing rules. In this regard, Japan’s cross-border data governance mechanism and South Korea’s credit information transfer right system both provide useful references for China in terms of establishing a unified data trading market.
When it comes to cultivating the ecosystem of access institutions, it is important to develop innovative appli- cation scenarios, upgrade credit services for SMEs and promote credit reporting platforms. South Korea has set lower capital requirements for “MyData” oper- ators, which can be a good example for China to fol- low in cultivating the ecosystem of credit institutions. In terms of strengthening security management, it is necessary to enhance technical protection, adopt the blockchain encryption technology, and develop new security technologies such as privacy computing. The comprehensive network governance framework pro- vided by Japan’s Cybersecurity Basic Act is worthy of reference for China’s credit industry. Outlook The practices in Asia-Pacific countries have revealed a common trend: under the premise of ensuring data security, data value can be released through property rights innovation, circulation mechanism reforms, and personal empowerment. Japan’s detailed regulations for data governance and South Korea’s self-deter- mination mode with regard to personal data provide China with multidimensional reference points. The future of the credit reporting industry lies in seek- ing a balance between security and development, as too loose management will lead to privacy risks and too tight management will obstruct innovation. China’s Twenty Articles on Data has pointed out the way ahead and the next step is to continually deepen the system details and technical standards. Only with such understanding can progress be made in terms of digital innovation.
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