"Urgent Need for Designation as Identity Verification Agencies"... Big Tech 3 Companies Making a Comeback Attempt

Success of MyData Service Also Influences
Full-Scale Review to Begin Next Month

[Asia Economy Reporter Kiho Sung] As the Korea Communications Commission announced its plan for the designation review of identity verification agencies this year, Naver, Kakao, and Viva Republica (Toss) are rushing to prepare for a re-challenge. The designation of identity verification agencies is closely related to the success or failure of the MyData (personal credit information business) service, which will be fully launched in August.

According to the financial sector on the 21st, Naver and Toss have expressed their intention to participate in this identity verification agency designation review. The remaining company, Kakao, stated that it will "carefully review and prepare." However, the industry expects Kakao to also make a re-challenge ahead of the MyData service launch in August.

An anonymous official from one of the three companies said, "The designation as an identity verification agency will be an important foundation for conducting financial services in the future," adding, "We are putting everything on the line to receive the designation."

Following the amendment of the Electronic Signature Act last year, the public certification system was abolished, opening the door for the use of private certificates. However, electronic signature providers must be designated as identity verification agencies by the Korea Communications Commission under the Information and Communications Network Act if they collect and use resident registration numbers. This qualification is required to perform the development, provision, and management of alternative means to resident registration numbers. The financial sector, where transactions are conducted based on real names, is a representative area expected to utilize identity verification-related tasks such as MyData.

After the abolition of the public certification system, two rounds of identity verification agency reviews were conducted, and five existing public certification authorities passed a total of 92 items to receive designation. However, the three electronic signature providers?Naver, Kakao, and Viva Republica?were disqualified in March. Naver and Kakao failed the 'uniqueness of identity verification information' item due to issues with non-real-name subscribers, while Toss was deemed unsuitable due to deficiencies in 'issuance of identity verification information' and 'facilities for creation, issuance, and management of alternative means.'

Big tech companies are in urgent need of designation as identity verification agencies. Recently, a path has opened to use it as an integrated authentication method for MyData. Initially, the government planned to allow only the 'Joint Certificate (formerly Public Certificate)' as the integrated authentication method for MyData services, but amid controversy over compulsion and criticism that it contradicts the basic purpose of the service, the direction shifted to allow private certificates as well.

Corporations wishing to be designated as identity verification agencies in this review must submit a demand survey form within five days until the 24th. An explanatory session is scheduled on the 25th for the corporations that submitted the demand survey form. Applications for designation review will be accepted by in-person submission at the Korea Communications Commission from the 7th to the 9th of next month. The review results are expected to be notified within 90 days (with a possible 30-day extension) from the date of application receipt.

The review will be conducted on a total of 92 items, including physical, technical, and managerial action plans, technical and financial capabilities, and appropriateness of facility scale. All 92 review items must be judged as 'suitable.'

A big tech official said, "I understand that all three companies have already supplemented the issues that were problematic last time," adding, "If the review starts, unless there are major issues, the designation will be granted."