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Newsletter | August 2015, Issue 2
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BANKING
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FSC Eliminates the Requirement of Authenticated Certificate in Electronic Financial Transactions
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Effective March 18, 2015, through the Notice of the Financial Services Commission, Article 37 of the Regulation on Supervision of Electronic Finance (“the “Electronic Finance Regulation”) was amended to no longer require the use of an authenticated certificate in electronic financial transactions.
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This is in line with the amendments that were announced on October 15, 2014, to Article 21(2) and (3) of the Electronic Financial Transaction Act (to become effective on October 16, 2015), which required the use of an authenticated certificate. In essence, the FSC is introducing the principle of technology neutrality by no longer restricting to the use of a particular technology or service.
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Since the amendments to the Electronic Finance Regulation abolish the requirement to use an authenticated certificate, it is expected that financial companies will have more technological discretion over the selection of certification methods, but in turn, will have greater responsibility for safety and security. Consumers will enjoy increased utility when using electronic finance through a variety of simplified certification methods.
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The details of the amendments to the Electronic Finance are:
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Amendment: The requirement to use an authenticated certificate or an equivalent certification method (in terms of safety) was amended to require use of a safe certification method
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Deletion: The provision setting forth the notion that a certification method evaluation committee may be established under the FSS to assess the safety of certification methods other than the authenticated certificate was deleted.
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Before Amendment
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After Amendment
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Article 37 (Standards for Use of Authenticated Certificate)
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Article 37 (Standard for Use of Certification Method)
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① All electronic financial transactions shall be conducted by using an authenticated certificate under the Digital Signature Act or a certification method equivalent thereto in terms of safety (“Authenticated Certificate, etc.”). However, this shall not apply to cases where the Governor of the FSS determined that the application of the Authenticated Certificate, etc. is technologically or systematically difficult.
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A financial company or an electronic finance business operator shall use a safe certification method in consideration of the type, nature, and risks relating to the electronic financial transaction.
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② The FSS may establish a certification method evaluation committee to assess the safety of certification methods other than the authenticated certificate.
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(Paragraph (2) deleted)
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③ The Governor of the FSS shall determine detailed matters of the certification method evaluation committee including formation, operation and tasks.
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