Electronic Authentication Stocks Soar Following Abolition of Public Certification

Korea Information Certificate Soars 25.3% This Month

[Asia Economy Reporter Park Jihwan] As the 'Gongin Certificate' system, which has been used for various financial tasks for over 20 years, faces abolition on the 10th, electronic authentication stocks are experiencing strong momentum. With the monopoly status of the Gongin Certificate disappearing, there is growing anticipation that various authentication methods will be utilized in the future, leading to significant increases in the stock prices of companies with electronic signature and security-related technologies.

According to the Korea Exchange on the 4th, Korea Information Certificate closed at 10,350 KRW, up 4.23% from the previous trading day. Korea Information & Communication and Korea Electronic Certification also rose by 2.88% and 2.12%, respectively. Just this month, the stock prices of Korea Information Certificate (25.3%), Korea Information & Communication (9.9%), and Korea Electronic Certification (11.9%) have surged significantly.

The rise in security technology companies is also notable. Integrated security solution company SGA closed at 1,030 KRW on the 3rd, up 16.78% from the previous day. Its monthly increase has reached 52.4%. Fintech security company Aton, which developed the authentication method 'PASS' operated by the three mobile carriers SK, KT, and LGU+, has seen its stock price rise 13.4% this month up to the previous day, attracting strong investor interest. RaonSecure, which can separate, store, and verify customer information using blockchain technology, also showed a rise of around 3% during the same period.

The recent stock price increases of these companies are driven by expectations that the end of the Gongin Certificate era will lead to a significant expansion in demand for various authentication and payment methods as well as security. On the 1st, the revised Enforcement Decree of the Electronic Signature Act, which includes standards and procedures for selecting electronic signature evaluation agencies and methods for verifying electronic signature subscribers' identities, passed the Cabinet meeting, paving the way for the Gongin Certificate system to be abolished starting on the 10th.

Going forward, it will no longer be necessary to install programs like Active-X when obtaining electronic signatures, and various authentication methods using non-face-to-face approaches such as mobile phones will be utilized instead of in-person identity verification at banks and other institutions.

However, some opinions suggest that the impact of the legal amendment may not be significant in practice since the Gongin Certificate can continue to be used without the 'Gongin' title. In particular, caution is advised regarding the potential for increased volatility, as most related stocks do not have large market capitalizations.