Press Release
Plan to Simplify Online Payment for E-Commerce
Background
Since online commerce businesses and online shoppers pointed out the requirement of public authentication certificates for online payments and its use of Active-X as barriers to further development of the online commerce, the government has been seeking various ways to address such issues and facilitate easier payments for online shoppers.
In May, the Financial Services Commission(FSC) lifted the requirement of authentication certificates for online payments with credit or debit cards. In June, the Ministry of Trade, Industry & Energy(MOTIE) launched ‘Kmall24,’ an foreigner-only online shopping mall for small online businesses to provide foreign shoppers with Active-X free Internet environment and easier online payment system.
There are remaining issues to be addressed. The Internet environment in Korea still falls short of Active-X free. Card companies still ask for authentication certificates from domestic consumers for online payments more than KRW 300,000, citing a possibility of online frauds or security breaches.
The FSC, the Ministry of Science, ICT & Future Planning(MSIP), and the MOTIE announced a set of measures to address such problems and establish an easier online payment system.
The Financial Services Commission
The FSC will work with card companies and payment service providers to provide alternative methods for self-identification other than the current authentication certificate. Regardless of the amount of money to pay, consumers will be able to choose a more convenient alternative to authentication certificate, such as self-identification through mobile phone, as early as August.
The FSC will encourage card companies and payment service providers to further expand their ‘simple payment’ service that ensures easier but safe online payments.
The FSC will revise the Standard Agreement for Credit Card Affiliated Members in August to allow payment service providers to store credit card information[1] on condition that the service providers meet certain technological, security, and financial requirements. Those who are allowed to hold such information will be under stricter inspection and supervision.
The Ministry of Science, ICT & Future Planning
The MSIP will introduce multiple technologies for digital signature as alternatives to the current Public Key Infrastructure(PKI) technology.
The MSIP will also develop and spread non-Active X authentication certificate technology as early as September. It will also expand global web standards(HTML5) in order to enhance foreigners’ access to Korean online shopping malls.
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For any inquiry, please contact Foreign Press & Relations Team at fsc_media@korea.kr
[1] Under the current terms, payment service providers are allowed to store ‘card numbers’ only for the purpose of credit sales or payments; however, they are not allowed to store any identification information about card holders such as valid date or CVC.