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[MTN News] Column | privacy protection technology to protect our data.

[Source] MTN News 05.07.23 07:00:01

Column | privacy protection technology to protect our data.



In the mid-2010s, the digital transformation revolution began belatedly in the financial sector as well. Fintech led the change, and open banking, block chain, and artificial intelligence that emerged afterwards have advanced financial services and established themselves as catalysts that will change the existing financial industry. Money Today Broadcasting sheds light on the footsteps and future of the financial industry, which is speeding up its evolution, through a series of columns by Kim Bong-kyu, director of the Digital R&D Center at NH Nonghyup Bank. While working at Nonghyup Bank, Director Kim Bong-gyu planned Open API, the predecessor of open banking, for the first time in Korea, and grafted various Fourth Industrial Revolution technologies such as blockchain and big data into financial services. Currently, blockchain technology company zkrypto is seeking the possibility of a future financial solution to respond to the Web 3.0 era.


김봉규 지크립토 연구소장(전무/공학박사)

In January 2022, the era of My Data arrived in earnest. Data is often compared to crude oil. Depending on the technology used to process crude oil, it is made into various products and determines the quality of the product, so the technology to analyze and process data is very important.


Personal credit information management business is called My Data, which is defined in the Credit Information Act. Personal credit information management business is to integrate distributed credit information based on the exercise of the right to request transmission of personal credit information and provide it to individuals.

(Credit information business Article 2 Subparagraph 9-2). The purpose of this word is to ensure that individuals who are data providers have the right to self-determination of their data, and to legally and technically control and manage their personal information. As mentioned in the previous article, MyData uses a standard API method based on the open banking infrastructure of financial institutions.


However, the reality so far does not come close to how My Data protects the individual (my) and how it helps the individual (my). Perhaps the cause is that the proven technology or tools that allow individuals to control and manage their data are still insufficient. Although the original purpose was to guarantee individual data sovereignty, it is regrettable that the system has focused too much on the consent process for the provision of personal information so far.


This is not to say that these procedures are not important. However, there may be something to use as a company that receives data, but most of them do not know what kind of help it will provide to individuals who are in the position of providers, and do not inform them.


Then, what is the difference between my data provider and individual needs? From the business operator's point of view, it is necessary to secure various data through as many consents as possible and to provide competitive services or distribute data based on this. However, from the point of view of an individual, he or she will want to provide his or her personal information in a minimum manner and ensure that his or her benefits are maximized. In other words, individuals want to selectively provide the data that companies want while minimizing their information, and to ensure their own economic benefits. In the end, at present, it seems difficult to satisfy both my data providers and individuals.


The meaning of minimizing personal information mentioned above is also connected to privacy protection, which has been studied a lot recently. There is also a mention of the 12 strategic technology trends for 2022 selected by Gartner. Gartner organized the 12 strategic technologies into three areas: Engineering Trust, Sculpting Change, and Accelerating Growth, and selected four detailed technologies for each area. Among them, Privacy-Enhancing Computation is included in the Engineering Trust area, which includes Data Fabric, Cybersecurity Mesh, and Cloud-Native Platforms. ) were also grouped together.


Gartner says that AI, blockchain, cloud and data, which represent the 4th industrial revolution era, must be used beyond the simple use of them to realize true business value. The reason for the selection of Engineering Trust was revealed. He also argued that protection of personal information, which should be handled most sensitively among data, is very important, so the introduction of computing technology that reinforces it is inevitable, and that value should be realized by using data in a more diverse way while protecting privacy.


As such, the global technology flow also mentions the necessity of introducing privacy protection technology. The Future of privacy forum, known as a personal information protection organization, predicted zero-knowledge proof, homomorphic encryption, obfuscation, data masking, and synthetic data as privacy enhancement technologies (PET) that companies should pay attention to in the future.


In particular, in the case of zero-knowledge proof technology, cases of effective application to online voting and digital asset trading are appearing. For example, when a digital asset transaction occurs, privacy can be protected by encrypting and anonymizing the transaction, and storing it in the block chain with a zero-knowledge proof that the transaction is 'true' so that a third party cannot confirm it. If the financial authorities, such as the Financial Intelligence Unit (FIU), want to check suspected illegal transactions, the technology has been developed to prevent money laundering by providing a separate audit key. It is also known that zero-knowledge proof-based privacy protection enhancement technology was also tested in the CBDC (Central Bank Digital Currency) phase 2 experiment conducted by the Bank of Korea in the first half of 2022.


In the case of MyData, which was launched in the name of the era of data finance, privacy protection principles are very important during the entire life cycle from design to destruction for the right to self-determination of personal information, and privacy protection technology can be an important means to achieve this. . Therefore, privacy protection technology is applied to collect only the minimum amount of personal information, and if necessary, it is immediately destroyed after the purpose of processing is achieved to guarantee the individual's right to self-determination of personal information, which is the subject of information. Now is the time to put more effort into it.


Fortunately, the amendment to the Personal Information Protection Act, which takes effect from September 15, introduces the right to request transmission of personal information to spread My Data in all fields. could be the basis for In addition, we look forward to the day when the true My Data era for individuals (my) will be opened, where personal privacy and the right to self-determination of personal information are guaranteed through more related research and innovation.

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