Open Banking in South Korea

South Korea has built a dual-layered open finance ecosystem comprising the Open Banking system and the MyData framework. Both are government-led initiatives that reflect South Korea's aggressive digital transformation strategy in financial services.

The Open Banking system, operated by the Korea Financial Telecommunications & Clearings Institute (KFTC) under FSC oversight, launched as a pilot in 2019 and went fully live in 2020. It provides standardized APIs for account information and payment initiation across all banks, essentially creating a shared banking infrastructure that fintechs and other authorized parties can access. By 2022, the platform had registered over 50 million users, representing a significant portion of South Korea's population.

The MyData initiative, enabled by the 2020 amendment to the Credit Information Use and Protection Act, goes further by establishing an individual's right to port their data across financial institutions. MyData service providers, licensed by the FSC, can aggregate data from banks, insurance companies, credit card issuers, and securities firms into unified dashboards. This enables personalized financial management, comparison services, and data-driven product recommendations.

South Korea's approach is notable for its rapid adoption and comprehensive coverage. The MyData ecosystem benefits from the country's high internet penetration (98%), widespread smartphone usage, and a tech-savvy population accustomed to digital financial services. Major financial groups like Shinhan, KB, and Hana have invested heavily in API infrastructure and MyData integration.

The FSC has signaled plans to expand the framework beyond financial services into healthcare, energy, and telecommunications, following a similar trajectory to Australia's CDR. South Korea's experience demonstrates how strong regulatory backing combined with advanced digital infrastructure can accelerate open finance adoption at a national scale.