Public Certification Certificates Abolished After 21 Years... How Will Things Change?

[Asia Economy Reporter Bu Aeri] The cumbersome public certification system, which caused much inconvenience due to its complex procedures, is disappearing. It has been 21 years since its introduction in 1999.

The full revision of the Electronic Signature Act passed the National Assembly plenary session on the afternoon of the 20th. The amendment includes the deletion of the concept of accredited certification authorities designated by the Minister of Science and ICT and the accredited certificates issued by these authorities. The aim is to eliminate the distinction between accredited certificates and private certificates to create fair competition in the market.

◆Why is the accredited certificate being abolished?

The controversy over abolishing the accredited certificate dates back to 2014. During the Park Geun-hye administration, the issue arose with the "Cheon Song-yi coat" incident. Overseas shoppers tried to purchase the coat worn by the main character Cheon Song-yi in the drama "My Love from the Star" but gave up due to ActiveX and the accredited certificate system. As a result, the Financial Services Commission at the time removed the mandatory use regulation of accredited certificates for e-commerce, improving payment issues.

However, inconvenience for the public continued afterward. Because the accredited certificate held a superior status under the Electronic Signature Act compared to other private certificates, major public institutions tended not to adopt alternative authentication services. Still, most government websites require an accredited certificate to issue civil documents such as resident registration copies. The "accredited" status officially recognized monopolized the market. Therefore, many citizens had to endure the complicated procedures of the accredited certificate when issuing civil documents.

◆How will things change?

The abolition of the accredited certificate does not mean that accredited certificates will disappear from government and financial institutions starting tomorrow. The certificates themselves are not disappearing; only the "accredited" designation among many certificates is being removed. Currently, only certificates issued by six accredited institutions?KFTC (Korea Financial Telecommunications & Clearings Institute), Koscom, Korea Information Certificate Authority, Korea Electronic Certification Authority, Korea Trade Network, and Initech?hold the "accredited" qualification.

The "accredited" qualification of the accredited certificate, which currently involves security card usage and cumbersome renewal procedures, will be abolished. However, with the amendment's passage, accredited certificates and private certificates will be legally equal, so the complicated accredited certificates are likely to naturally disappear from the market due to competition.

◆Will a simple authentication market open?

Currently, various companies offer private certificate services. The three major mobile carriers and fintech security company Aton are targeting the simple authentication market with the mobile identity verification service PASS. This service allows electronic signatures within one minute using a 6-digit PIN or biometric authentication after launching the app. PASS's certificate issuance grew tenfold in nine months, from 1.08 million in April last year to 10.2 million in January this year.

Kakao also provides KakaoPay authentication service based on KakaoTalk. This service has over 10 million subscribers. There is also "BankSign," created by a consortium of banks. Launched in 2018, BankSign can be used across multiple banks once issued and boasts a certificate validity period of three years as an advantage.

Experts predict that competition among private companies will intensify once the status of the accredited certificate is abolished. Professor Kim Seung-joo of Korea University's Graduate School of Information Security said, "From the public's perspective, they will be able to experience simpler authentication procedures," adding, "For the time being, the private companies' era of competition will continue. Companies like Kakao or the three telecom carriers that gain the initiative first may monopolize the authentication platform market."