The financial authorities have reformed the enforcement regulations of the Electronic Banking Supervision Code to ease the process by abolishing the obligatory identification when paying by credit or debit cards. (image: FotoDB.de/flickr)
SEOUL, May 20 (Korea Bizwire) – No more certificate of authentication is required to make transactions at online stores.
On May 19, the Financial Services Commission and the Financial Supervisory Service announced that online transactions can be made without certificates of authentication which used to be a mandatory procedure for purchases over 300,000 won, starting on May 20. A certificate of authentication is an electronic identification system which has been widely used in Korea.
The financial authorities have reformed the enforcement regulations of the Electronic Banking Supervision Code to ease the process by abolishing the obligatory identification when paying by credit or debit cards.
They said, “We are not repealing the use of authentication certificates but relieving the online stores from the obligation.” From now on, the card companies or payment gateways can decide whether they want to use the authentication certificate system and may keep the scheme until they come up with new security or identification processes.
A clear benefit of such reform would be that it has become much easier for foreigners to shop from online stores in Korea. It was difficult for foreigners to get certificates of authentication in Korea which made it almost impossible for them to ever purchase anything from the online stores.
However, the authorities have made it clear that authentication certificates are still mandatory for online money transfers over 300,000 won, considering the greater risk they carry.
“Electronic transactions made on credit can easily be cancelled when problems arise,” explained the financial authorities. They said, “On the other hand, account transfers are made instantly which make them harder to be compensated when there are problems.”
Written by Robin Koo (linguistkoo@koreabizwire.com)
Technology (Follow us @Technews_Korea)
