Data Sharing Requires Consensus and Legal Framework First
Cryptocurrency Cannot Be Omitted From Future Economic Structure

An opportunity was provided to discuss issues currently problematic in establishing the foundation for the Fourth Industrial Revolution.

At the '2018 ICT Policy Forum' held at COEX on the 29th, a discussion session was held on the theme of establishing the Fourth Industrial Revolution foundation and strengthening digital capabilities. The ICT Policy Forum is where industry, academia, and media present annual policy issues.

Kang Chul-ha, Director of the Korea IT Law Research Institute, identified obstacles to data ecosystem creation as: vendor dependence on new services and products, increased risks when data analysis is commercialized for automated decision-making, social problems resulting from information concentration and asymmetry, rigidity of traditional data distribution systems, and privacy protection.

As improvement measures, he proposed: △balance between information protection and utilization, △consistency of information protection systems, △ensuring legality of data utilization, △development of new information distribution cooperation models, △global data regulation, and △building privacy and consumer trust.

He stated, "Among various improvement measures, ensuring data circulation is important. For example, data collected from IoT sensors is applied to artificial intelligence and distributed through autonomous vehicles, robots, and so on," emphasizing that "rather than individual department-centered development and regulatory measures, it is necessary to first establish a distribution network and then improve systems accordingly."

Attorney Kim Kyung-hwan from Law Firm Minhoo commented on the issue of data personal information utilization, stating "Data ownership is still a progressive topic being discussed only in Europe. What is most needed from a data perspective is creating an institutional foundation for data sharing," and pointed out that "law is needed to create different value by utilizing data others possess, but there is nothing in place."

Currently, there is no relevant law or regulation, only guidelines for personal information de-identification measures. However, the guidelines lack legal binding force and clarity, making industrial application difficult. Attorney Kim stated, "Because establishing legal grounds takes time, personal information de-identification guidelines came first. However, lacking a legal basis makes application difficult. Even if it takes time, urgent legislation on general data sharing is needed. Once sharing occurs, activation will follow naturally."

Director Kang added, "If legislation on data sharing takes time and faces difficulties, attempting cooperation models based on private sector autonomy could also be one approach."

Separating Blockchain and Cryptocurrency Difficult, But Legal Regulation and References Must Come First

Director Oh Dong-hwan from the Korea Internet & Security Agency mentioned that blockchain industry activation requires securing visibility of business cases to expand market creation, improving regulatory framework to adjust blockchain entry barriers, and establishing governance systems for core standards.

Regarding cryptocurrency and blockchain, Professor Park Sung-jun from Dongguk University stated, "Personally, I hold the position that cryptocurrency and blockchain cannot be separated. There are different prerequisite conditions between countries calling for cryptocurrency regulation," and pointed out that "overseas countries activate blockchain first and then begin regulation, while our country is going the opposite direction."

He advised, "Fundamentally, cryptocurrency is necessary because the future economic structure is moving toward P2P," and continued, "Cryptocurrency is an element that constitutes the future economic structure. Even with private blockchains, as services develop, services requiring cryptocurrency emerge. We need to have a regulatory stance with an eye toward what kind of economy we want to build."

Professor Kwon Hyuk-jun from Soonchunhyang University raised the issue of blockchain utilization from the perspective of SI companies. Stating that "when converting what was traditionally done offline to blockchain, resistance within organizations is substantial," he expressed his opinion that "when implementing blockchain, we must conduct benefit analysis to determine whether it is better to maintain existing traditional systems or implement blockchain, and present this to customers and partners."

Director Oh emphasized the importance of creating distinctive domestic blockchain cases rather than merely adopting overseas examples, stating "For blockchain to become active, cryptocurrency is necessary. However, currently, numerous debates arising from viewing cryptocurrency and blockchain together make it impossible to apply blockchain."

He concluded, "If we continue this way, we will lose leadership by year-end," and stated, "Blockchain is difficult to apply without overhauling current legal systems. Improving legal regulation and providing various references, even if cryptocurrency is applied afterward, it won't be too late."