Seoul City, National Pension Service, and Over 100 Institutions Partner
Convenient with KakaoTalk Verification
Electronic Signature Act Amendment to Take Effect in Two Months
Private Authentication Market Worth 70 Billion Won 'Golden Egg'
[Asia Economy Reporter Buaeri] The enforcement of the revised Electronic Signature Act, which abolishes the status of the public certification, is just two months away. KakaoPay Certificate, which has established itself in the simple authentication market based on KakaoTalk, is aiming to enter the public sector market. Attention is focused on whether KakaoPay Certificate will be used for year-end tax settlement as well.
Currently partnered with over 100 organizations... issuance exceeds 17 million
Lee Seunghyo, Vice President of KakaoPay Service Division, said in an interview with Asia Economy on the 19th, "KakaoPay Certificate is being rapidly adopted by financial institutions and public organizations due to its recognized stability and convenience." Currently, KakaoPay Certification has partnered with more than 100 institutions including Seoul City, National Pension Service, and Samsung Fire & Marine Insurance, and the cumulative number of certificates issued has exceeded 17 million (as of September).
KakaoPay Certification is targeting the authentication market with a 'simple procedure.' Its biggest weapon is the national messenger, 'KakaoTalk.' Users only need to issue a certificate once through KakaoTalk, and then use this certificate to log in or verify their identity at KakaoPay certification partner institutions. Unlike the existing public certification, there is no need for complicated program installation or security card authentication procedures. Vice President Lee stated, "The goal is for the entire nation to be able to authenticate themselves through the KakaoTalk platform and to completely replace offline ID cards and seals."
Kakao recently increased its chances of becoming the national certificate by being selected as a candidate for the Ministry of the Interior and Safety's 'Pilot Project for Expanding Electronic Signatures in the Public Sector.' If selected as the final operator, starting from January next year, it will provide authentication services on major government websites such as the National Tax Service, Ministry of the Interior and Safety, and Anti-Corruption and Civil Rights Commission. Vice President Lee explained, "We are discussing the introduction of KakaoPay authentication services with various institutions that have been required to use public certification."
Electronic certificate market size 70 billion won 'Golden Goose'
The revised Electronic Signature Act has turned the private authentication market into a golden goose. The three major telecom companies' PASS, NHN Payco, KB Mobile Certificate, which were selected as candidates for the Ministry of the Interior and Safety's pilot project, are competitors of KakaoPay. PASS has exceeded 18 million cumulative issuances, and KB Mobile Certificate, launched in July last year, has also surpassed 5 million users. The NHN Payco Certificate, introduced last month, has been recognized for its technical excellence, including blockchain collaboration with Samsung SDS.
According to industry sources, although the electronic certificate market size is around 70 billion won, securing market dominance can enable not only commission revenue but also the expansion of business models by integrating various services. For example, the 'electronic notification service' using certificates is expected to grow from the current 93.9 billion won to 2.1 trillion won by 2023, according to the Korea Internet & Security Agency (KISA). Currently, 53 million electronic notifications are sent annually through KakaoPay, which is double the amount from the previous year. Vice President Lee predicted, "In the long term, a paperless era will open where the entire nation can receive and conveniently send electronic documents with just KakaoPay."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
