The National Assembly finally approved the Financial Services Commission’s proposal to revise the Detailed Regulation on Supervision of Electronic Financial Transactions. The regulation which required the use of accredited certificates for online purchase will be abolished starting from May 20th this year. The FSC pursues to revitalize electronic commerce and encourage consumer spending. One of the main goals of Park Geun-hye’s administration is deregulation. This is a new step towards freer and easier e-commerce.
What is Accredited Certificate?
According to the definition of Digital Certification Center, a digital certificate is an electronic certificate of a registered digital seal which secures all kinds of transactions over the internet and prevents transaction forgery. It is issued by a certification authority (CA) with a public key, a serial number, a subscriber name and a validity period.
What is being changed?
Currently in Korea, a Digital Authenticated Certificate must be used for any online purchase using credit card for payments worth more than 300,000 won(290 US$). The revised rules for operation will enable customers to purchase products online without having to use Digital Certification when the payment is made by one’s credit card, or a debit card. However, online account transfer over 300,000 won still needs to be done using accredited certificates.
What is made better?
Anyone who owns credit cards will be able to complete online payment much simply. One of the tedious and laborious part for online shopping used to be having to use Digital Certification. The procedure of online purchase is now simplified. Especially foreigners can easily make online purchase. It had been complicated for foreigners to issue accredited certificates, and therefore hard to make online payments when buying items at Korean stores. Now, foreigners can have easier access to e-commerce in Korea. Foreigners can simply pay to Korean stores by cards that are issued abroad. As long as the store receives Masters and Visa, foreigners would have no problem buying anything.
The revised regulation will go into force on May 20. The changed law will enable freer and easier access to e-commerce for anyone who had difficulties with using accredited certificates, especially for foreigners. There could be some people who feel anxious and less secure from the change. For those people, credit card companies have various verification methods such as SMS or phone calls. Financial consumers are well protected from potential frauds, so you don’t have to be worried!!