"Electronic Documents Also Legally Effective" Basic Act on Electronic Documents and Electronic Transactions to Take Effect Starting Tomorrow

[Asia Economy Reporter Seulgina Jo] The Ministry of Science and ICT and the Ministry of Justice announced that the "Framework Act on Electronic Documents and Electronic Transactions" aimed at promoting the use of electronic documents across society will come into effect on the 10th.

The amended law clarifies the legal effect and written requirements of electronic documents, establishes grounds for discarding paper documents, and reflects improvements to the certified electronic document intermediary system to activate online registered mail services.

First, it explicitly states that electronic documents have legal effect. Moving away from the fixed notion that written documents must be paper-based, electronic documents can now be considered written documents if they meet certain requirements. However, this excludes cases where other laws have special provisions such as guarantees or where the nature of the document does not permit electronic form.

The Ministry of Science and ICT explained, "Unless otherwise specified by special regulations, acts requiring written or documented forms under various laws can also be performed using electronic documents, which is expected to promote the widespread use of electronic documents throughout society."

Additionally, the amended law allows paper documents to be discarded when electronic documents converted by scanning the paper documents are stored at a certified electronic document center. This is expected to improve inefficiencies caused by the dual storage of paper and scanned documents in sectors such as finance and healthcare.

Furthermore, the entry requirements for certified electronic document intermediaries (online registered mail service providers) have been relaxed to allow innovative small and medium-sized enterprises with new technologies to enter the market. The Ministry of Science and ICT anticipates that this will lead to the creation of many new services that provide convenience in everyday life, such as mobile electronic notifications.

Mobile electronic notifications are services that allow users to receive information about taxes, civil defense notices, and more via mobile apps, MMS, etc. Since the service began in 2019, about 20 million notifications have been sent, playing a key role in increasing the distribution volume of electronic documents. The distribution volume increased from 4.4 million in 2018 to 27 million in the third quarter of this year.

Meanwhile, the Ministry of Science and ICT and the Ministry of Justice plan to revise and supplement the explanatory guide on the Electronic Documents Act, which was originally published in 2017, to help the public better understand the law and promote the use of electronic documents. Along with this, a "visiting briefing session" that explains laws and systems and addresses questions by visiting major cities nationwide is scheduled to be held in the first half of 2021.

Heo Seongwook, Director of Information and Communication Policy at the Ministry of Science and ICT, stated, “With the enforcement of this amended law, the spread of electronic document use and data accumulation across society is expected to accelerate, promoting the realization of a paperless society and making a significant contribution to achieving the ‘2050 Carbon Neutrality’ goal.”

He added, “By 2023, it is expected that about 5.2 billion sheets of paper documents stored and about 4.3 billion sheets circulated will be reduced, saving approximately 1.1 trillion KRW in costs, and creating a new electronic document market worth about 2.1 trillion KRW. Since this is an area with significant economic effects, we plan to continue improving systems and supporting related fields by actively reflecting the current status of electronic document technology and industry to minimize the burden on the industry and activate various new services.”