Putting our public data to work
Governments possess massive quantities of digital data from the past two decades and are making it more accessible to the public in hopes it will create a path out of persistent economic woes caused by the global financial crisis.The EU estimates its public data market would constitute 0.3 percent ($50 billion) of its combined gross domestic product, valued at $180 billion, if it aggressively pursues an open data policy. However, that amount of stimulus cannot be expected in Korea yet.
In October, new legislation to facilitate the use of public data took effect as part of Korea’s “Government 3.0” aim of equitable and transparent information sharing among the central government, local governments, government agencies and the public. To be effective, the nation’s modest public data market will need considerable groundwork.
Companies around the world typically use public data in three ways.
First, the information provides insight into business conditions and trends. For example, a dashboard of economic indices, market trends and consumer characteristics of countries can help companies make better decisions about product design and marketing.
Second, public data can help improve profitability and efficiency. Weather and other data collected from government satellites are already essential for predicting supply and demand in agriculture, logistics and leisure.
Third, public data is being combined with a company’s experience and expertise to conceive software applications and new business ventures such as consulting. Data-related solutions are especially applicable in health and medical services, security and education.
For effective use of public data in Korea, the government will need more than opening up its files. Informing the public about the value of data use should be one of the initial tasks. Only a small fraction of businesses in Korea are even aware that open data is a key component of the nation’s “Government 3.0” vision, let alone its potential to enhance their competitiveness. And the public is largely unaware of the use and benefits of public data. Most people, for example, probably do not realize the widely appreciated adjustment of late-night bus schedules was the result of analyzing public data.
Privacy concerns are another barrier. At present, the use of personal data is overly regulated in Korea, acting as a strong disincentive to fostering data-based ventures. Deregulation is needed but must be tactful to avoid misperceptions that data is being diverted to a select group of companies.
The midata project in the United Kingdom could be on option: a trusted public organization gathers data from people who volunteer personal information; companies develop new services using the information; and volunteers can get the service first. While benefiting from new services, users have better control over who can use their data and to what end.
Uncertainty in the private sector about using public data also needs to be ameliorated. Most companies are unsure if public data can be an asset to them and whether investing in its use is worth the risk. But if Korean companies stay on the sidelines and allow foreign businesses to take the lead in accessing the nation’s public data, the issue of “data sovereignty” may arise.
Since Korea’s public data market is still weak, it is critical that the government initially offer incentives to stimulate private-sector participation. The government needs to consider providing financial support for privately launched services using public data to cover fees for server maintenance or data management. This kind of support can reduce developers’ burden significantly so they can focus on development.
The government also will need to draft a long-term national data resources strategy. Competition to secure digital resources is at hand. The government will have to think continuously about the scale of data availability, rather than clinging to past data that is rapidly losing value in the era of smart devices.
Finally, the government needs to improve the user environment for public data. It should facilitate collaboration among software developers to build up data management tools for users and provide a highly interoperable user environment like the international Project Open Data.
*The author is a research fellow at Samsung Economic Research Institute. Visit www.seriworld.org for more SERI reports.
by Chae Seung-byung
with the Korea JoongAng Daily
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