Korea Mandates Digital Certificates

[R. A. Hettinga]

http://www.koreaherald.com/SITE/data/html_dir/2002/07/04/200207040023.asp

    Monday, July 8, 102

Official digital certificates needed


Starting next year all Internet-based financial transactions will require
users to possess official cyber certificates and digital signatures, the
Financial Supervisory Service (FSS) said yesterday.

The financial watchdog said that the new measures were being introduced to
ensure security and accountability in cyber exchanges. The move also
conforms to the government's efforts to digitalize its services.

"The introduction of the new system is designed to protect transactions
from being compromised, ascertain the identity of users, and make it
impossible for people to claim that they did not make transactions that
turned out to be unfavorable," said an FSS official.

The official said that that the existing certificates provided to banks and
financial institutions will have to be converted into official certificates
provided by the Korea Financial Telecommunications and Clearance Institute
(KFTC) by May 2003.

He also said that the KFTC will only issue official certificates for
financial institutions interested in starting Internet banking services
from Sept. 1.

The KFTC oversees electronic funds transfers and digital payment systems
and is responsible for "yessign," a certification service that gives
Internet transactions legal validity and protection under the digital
signature law.

The FSS, in addition, said that people who have been able to conduct
Internet-banking by using the conventional ID name and password system will
also have to have digital certificates from May of next year.

The supervisory body said that once an official certificate is obtained,
the holder will be able to use it to conduct Internet banking, online stock
trading, and arrange cyber insurance deals. The digital certificates will
also allow people to file complaints or suggestions to the various
government ministries and take part in government bids.

Meanwhile, people can apply for an official digital certificate by
submitting requests to financial institutions that have contracts for cyber
trading with the KFTC, Korea-Stock, the Korea Information Certificate
Authority Inc., CrossCert Inc., and KTNet Co.

-- 
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R. A. Hettinga <mailto: rah at ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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