Resumed Designation Review of Identity Verification Agencies... Will Big Tech Pass This Time?

[Asia Economy Reporter Kiho Sung] The Korea Communications Commission (KCC) has announced the designation review plan for identity verification agencies for 2021, accelerating the steps of big tech companies that previously faced setbacks. In particular, the designation of identity verification agencies is closely related to the success or failure of the MyData (personal credit information verification) service, which is set to officially launch in August, drawing significant attention from the related industry.

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

Big tech companies are in urgent need of designation as identity verification agencies. This is because a path has recently opened to use them as integrated authentication methods for MyData. Initially, the government planned to allow only the ‘Joint Certificate’ (formerly the Public Certificate) as the integrated authentication method for MyData services, but amid controversy over the mandatory use and criticisms that it contradicts the basic purpose of the service, the direction shifted to also allow private certificates.

With the amendment of the Electronic Signature Act last year, the public certificate system was abolished, opening the way for private certificates to be used. However, electronic signature service providers must be designated as identity verification agencies by the KCC 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 field expected to utilize identity verification-related tasks such as MyData.

Since the abolition of the public certificate system, two rounds of identity verification agency reviews have been conducted, and five existing public certification authorities passed a total of 92 items to receive designation. However, the three electronic signature service 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.’

Corporations wishing to be designated as identity verification agencies in this review must submit a demand survey form during the five-day period ending on the 24th. An explanatory session is scheduled for the 25th for those who submitted the demand survey forms. Applications for designation review will be accepted by visit submission at the KCC from the 7th to the 9th of next month. The review results will be notified within 90 days (with a possible 30-day extension) from the date of application receipt.

The review will cover 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’ to pass.

A big tech industry insider said, "We understand that all three companies have already addressed the issues that were problematic last time," adding, "If the review begins, designation is expected unless there are major difficulties."

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