'Public Certificate' Revived by MyData... Controversy Over Consumer Inconvenience and Backward Innovation

MyData Implementation Approaching in August
Only Authorized Certificate Issuers Allowed
Industry Protests "Grant Exclusive Position"

[Asia Economy Reporter Kiho Sung] The government’s decision to allow only the ‘Joint Certificate (formerly Public Certificate)’ as the unified authentication method for the MyData service, which will be implemented from August, has sparked controversy. Although the mandatory use of the public certificate has been abolished, consumers who want to use the MyData service may face the inconvenience of having to reissue the old certificate. Critics argue that this goes against the purpose of MyData, an innovative financial service that gathers scattered personal credit information to provide customized credit and asset management services.

According to the financial sector on the 13th, the Financial Services Commission and the Korea Communications Commission recently decided through inter-agency consultations that only the Joint Certificate can be used as the unified authentication method for MyData. Unified authentication requires designation as a personal identification institution by the government before the MyData service is launched in August, allowing the collection of users’ resident registration numbers and providing alternative authentication methods to information and communication service providers.

The government has legally interpreted that mobile carriers (Pass app, SMS authentication), card companies (card authentication), and others designated as personal identification institutions do not have the authority to issue unified certificates because their authentication services are not certificate-based.

A Financial Security Institute official said, “Due to the Korea Communications Commission’s process, inter-agency consultations concluded that unified authentication can only be done through the Joint Certificate,” adding, “This does not mean excluding other private authentication providers; they will be allowed to use it sequentially.” Accordingly, the authentication authority for the MyData service is limited to existing public certificate issuers such as the Korea Financial Telecommunications & Clearings Institute, Koscom, and Korea Information Certificate Authority.

Consumer Inconvenience Inevitable... Fintech Industry Faces Setbacks in MyData Business

The problem lies in the significant inconvenience to consumers. If a consumer’s existing public certificate has expired or been discarded, they must go through the hassle of reissuing it and copying the certificate from their bank application to transfer it to the MyData service provider’s app. This raises concerns that the MyData project’s goals of financial innovation and enhancing consumer convenience will be undermined.

Companies preparing for the MyData service, such as Toss, Naver, and Kakao, applied for the status of ‘personal identification institution’ through the Korea Communications Commission but were deemed ineligible in March. These companies are preparing to reapply, but the commission has yet to set a schedule for reexamination. Since the review process is expected to take more than three months, a delayed start could make it impossible to meet the August implementation deadline.

The fintech industry is protesting, saying that granting exclusive status again to the public certificate, whose mandatory use was abolished after 21 years, is problematic. In fact, after the Electronic Signature Act amendment passed last year, which ended the public certificate’s monopoly, Kakao and the three mobile carriers’ Pass certificates were used for year-end tax settlements for the first time this year.

A fintech industry insider said, “We are frustrated by the lack of news about the additional review schedule,” adding, “Since the MyData service’s first-mover advantage is important, we may fall behind in the financial innovation race.”

Meanwhile, financial authorities will hold a standard specification briefing session for MyData service providers on the 15th. Currently, the financial authorities and the Financial Security Institute are building the MyData unified authentication system.