[Q&A] Year-end Tax Settlement via KakaoTalk? Abolition of Public Certification... How Will It Change?

[Image source=Yonhap News]

[Asia Economy Reporter Buaeri] On the 10th, the inconvenient Public Certification, which caused inconvenience due to complicated procedures, will disappear after 21 years. From the 2020 year-end tax settlement to be implemented early next year, private certificates can be used instead of the Public Certification. The amendment to the Electronic Signature Act, which takes effect from this day, eliminates the superior status of the Public Certification and makes it a 'Joint Certificate' without distinction from private certificates.

-Can I no longer use the Public Certification I have been using from today?

▲You can continue to use it. You can use it until the expiration date of the existing Public Certification. The certificate itself does not disappear, but the status of 'public' recognized by the government disappears. Currently, Public Certifications are issued by six government-recognized institutions: Korea Financial Telecommunications & Clearings Institute, Korea Information Certificate Authority, Korea Electronic Certification Authority, Koscom, Korea Trade Network, and Initech. In the future, Public Certification will lose its legal guarantee and become one of the private certificates. Its name will also change to 'Joint Certificate.'

-Why is the Public Certification being abolished?

▲The Public Certification was criticized for its complicated issuance procedures and difficulty in storage. The controversy over abolishing the Public Certification dates back to 2014. The issue arose during the Park Geun-hye administration with the 'Cheon Song-yi Coat' incident. Overseas shoppers tried to purchase the coat worn by Cheon Song-yi, the protagonist of the drama 'My Love from the Star,' but gave up due to ActiveX and Public Certification. At that time, the Financial Services Commission eliminated the mandatory use of Public Certification for e-commerce, improving payment issues. However, even after that, the Public Certification maintained a superior status compared to other private certificates under the Electronic Signature Act, and major public institutions insisted on using the Public Certification. This raised concerns that it hindered fair competition with private certificates.

-What private certificates are available?

▲ICT companies have launched various private certificate services such as KakaoPay Certification, the PASS service from the three major telecom companies, Naver Certification, and NHN Payco. Currently, KakaoPay Certification and PASS have recorded 20 million issuances. There is also a financial certification service jointly conducted by the Korea Financial Telecommunications & Clearings Institute and the banking sector.

-How will this year's year-end tax settlement be handled?

▲Private certificates will be available for use in the year-end tax settlement implemented early next year. The Ministry of the Interior and Safety selected Kakao, PASS, NHN Payco, KB Kookmin Bank, and Korea Information Certificate Authority as candidate operators for the 'Project to Expand Electronic Signature Adoption in the Public Sector.' The final operators will be selected in mid-December, and from January next year, authentication services will be provided on major government websites such as the National Tax Service, Ministry of the Interior and Safety, and Anti-Corruption and Civil Rights Commission. Starting with the year-end tax settlement, private certificates will be introduced to services like the People's Petition and Government24.

-Are there any security concerns regarding private certificates?

▲To evaluate the safety of private certificates, the government introduced the 'Electronic Signature Certification Business Evaluation and Recognition System' in the enforcement decree of the amended Electronic Signature Act. Evaluation agencies selected by the Minister of Science and ICT assess whether operators comply with operational standards. Only companies that have established security measures such as anti-tampering measures and facility and data protection can release private certificates.

This content was produced with the assistance of AI translation services.