Microsoft Azure (MS)
SEOUL, Dec. 2 (Korea Bizwire) – Microsoft has become the first global tech giant to secure certification under South Korea’s Cloud Security Assurance Program (CSAP), allowing its Azure cloud services to be used by public institutions.
The certification, announced on Monday, marks a significant breakthrough for international cloud providers entering the domestic public sector.
The CSAP certification, issued by the Korea Internet & Security Agency (KISA), evaluates cloud service providers’ compliance with stringent security standards and is categorized into three levels: High, Medium, and Low.
Microsoft received the Low-tier certification, enabling its services to operate public systems that do not handle sensitive or private data.
Historically, South Korea’s regulatory requirements, including mandatory physical separation of servers for public and private sector data, had restricted global cloud companies like Microsoft, Google, and Amazon Web Services (AWS) from accessing the public market.
However, the government’s 2022 introduction of tiered CSAP certification lowered barriers, permitting public use of foreign cloud services that meet certain security standards.
The Ministry of Science and ICT has also committed to fostering competition between domestic and global players to drive growth in the cloud ecosystem, signaling further opportunities for international providers. Google and AWS are reportedly in the process of seeking similar certifications.
While Microsoft’s entry into the public sector could prompt increased competition, it also raises concerns over the shrinking market share for local cloud providers. Currently, global giants dominate South Korea’s private cloud market, with AWS holding 60% and Microsoft 24%, according to a 2023 government report.
Microsoft’s certification clears the way for its Azure platform to serve a range of public institutions, including local governments, public schools, and affiliated organizations. Evaluations for the certification included Azure’s artificial intelligence infrastructure, databases, and security protocols.
Hyun-Kyung Yoo, Head of Microsoft Korea’s Public Sector Business, expressed the company’s commitment to helping public sector clients comply with regulations while accelerating innovation through AI and cloud technologies.
Kevin Lee (kevinlee@koreabizwire.com)
