Source:
pixabay
The New Fuel - Big Data
Data is becoming an increasingly important resource for development. The big data industry involves collecting, refining and applying data. There are other related activities that are included in the industry such as storing and securing the data. Private companies and the government are investing in big data to fuel industrial growth.
Market Size for Big Data:
The market for big data was 1.7 trillion KRW (US$ 1.5 billion) in 2018. Korea is at the early market stage so there is significant growth potential.
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
1,361 |
1,412 |
1,572 |
1,645 |
1,756 |
Source: Ministry of Science and ICT
Unit:
KRW billion
‘Korean New Deal’: On July 15th, the government announced a "Digital New Deal that promises to open 14,000 databases to the public and to build a ‘Data Dam’". A Data Dam was a term coined to represent the data infrastructure where the data flows into in a central location where it is refined and distributed. The Digital New was funded by a budget of KRW 58 trillion (US$ 50 billion) and create 900,300 IT-related jobs by 2025.
Challenges to Big Data:
Even though the market is growing, there are three major concerns regarding the development of big data in Korea, insufficient data, late start, and regulatory issues.
Insufficient data access
Data is the core backbone of the Korean New Deal. However, one of the main obstacles is insufficient data and limited access to big data. The key determinant of success of the Korean New Deal is making big data available for unrestricted use.
Korea has advanced hardware and IT infrastructure but only a few companies have the experience to apply or use refined data. Domestic private companies were reluctant to invest in big data as most believed it would not be relevant or could not provide enough data. As a result, the amount of available big data is limited. Domestically big data is available only in the media, medical, science and telecom industries but access is difficult. Smaller companies do not have as much access to big data as it is collected by the government and large conglomerates.
The Korea Data Agency has organized programs for smaller companies to access big data from major data companies and analyze it. Programs also support smaller companies by providing grants such as ‘data voucher,’ which entrepreneurs and small companies can use to purchase customized processed data.
Late Entry
Korea was late to embrace the potential of big data. Leading countries such as the US, Europe and Japan have been utilizing technology since the 2000s. They started joint government projects in a new, technology-friendly environment where big data is collected, used, applied, and developed freely. In 2014, when the Korean government acknowledged the importance of big data, foreign companies were already analyzing it.
Starting late means that a revolutionary change is required to catch up with industry leaders. Even though Korea’s New Deal will bring significant resources, it remains difficult to provide high-quality big data solutions.
Regulatory Issues
Regulations are also a key issue as collecting and using big data can violate privacy laws. The “Personal Information Protection Act (PIPA)”, “Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.”, and “Credit Information Use and Protection Act” are the three regulations that curtail the collection and use of big data.
Information that cannot be directly connected to
an individual is not affected by the PIPA, but when an individual can be
identified by combining data, it could violate the law. As massive information
is collected and analyzed, it is hard to track and differentiate information without
identifying individuals so it is important to consider information protection. The
Act on Promotion of Information and Communications Network Utilization and
Information Protection, etc. is broader than PIPA so it makes handling personal
information even more challenging. Credit information can identify an
individual. As credit information is collected, it could be identified with
more than one secured data, which might expose an individuals personal
information.
There are other restrictions that create barriers to the utilization of big data. With the Korean New Deal, the government and private industry will work to develop a friendly environment creating big data infrastructure, which will lay the groundwork for the 4th industrial revolution.
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