South Korea to Introduce Digital IDs on Banking AppsSouth Korea to Introduce Digital IDs on Banking Apps Commercial banks in South Korea plan to integrate digital identification cards into their mobile apps by the end of the year. This move aims to expand banking services to non-banking sectors and simplify the authentication process for various transactions. Mobile ID Expansion KB Kookmin Bank, NH NongHyup Bank, and a consortium of Kakao and KakaoBank have been selected to offer mobile identification through their apps. The digital IDs will eliminate the need for physical IDs during in-person verification at polling stations, government offices, hospitals, and other locations. Banking App Services Banks have been expanding their app services to include online shopping, sports event tickets, GPS navigation, and passport applications. KB Kookmin Bank, for example, now allows passport applicants to complete the process digitally and collect their passports at designated offices. Blockchain-Based Digital ID South Korea’s digital ID initiative utilizes blockchain technology for enhanced security and data protection. The decentralized identity (DID) framework ensures that individuals control their data and consent to its usage, mitigating identity theft risks. International Collaboration South Korea and the World Bank have partnered to promote digital identification systems in developing countries, utilizing South Korea’s advanced K-DID system. K-DID has been recognized for its robust security against personal information leakage and its ability to facilitate a smooth transition to digital infrastructure. Previous Partnerships South Korea’s K-DID model has also been adopted in Costa Rica through a collaboration with KOMSCO, showcasing its global potential in improving digital identification systems.
Commercial banks in South Korea will introduce digital identification cards on their mobile apps this year to expand their services to non-banking sectors, reports The Korean TimesThe initiative is part of the Ministry of Internal Affairs and Security’s project to allow private companies to provide services related to the public sector.
The new digital ID service is in line with the banking sector’s efforts to promote digital technology for growth, especially in non-banking sectors. Users of these banking apps will no longer need to carry physical IDs for in-person verification at polling stations, government offices, hospitals and other locations.
KB Kookmin Bank, NH NongHyup Bank and a consortium of Kakao and KakaoBank have been selected to offer mobile ID through their apps. The ministry selected these companies based on their customer base.
The banks have also expanded their app services to include shopping, sporting event tickets, GPS-based driving directions and maps. For example, KB Kookmin Bank has introduced a mobile passport application process, allowing applicants to pick up their new passports at district offices once they are ready.
In 2022, the South Korean government announced plans to use blockchain technology as the basis for its digital IDs, making it available to anyone with a smartphone. The goal was to register around 45 million citizens within two years, potentially saving the government around 60 trillion won (about $42 billion) over a decade. The initiative was aimed at facilitating a comprehensive transition to digital infrastructure, allowing all services to move online.
Earlier this year, South Korea and the World Bank announced a pledge to improve digital identification systems in developing countries by using South Korea’s advanced K-DID system.
Launched in 2020, the blockchain-based K-DID system is known for its robust security against personal information leakage and identity theft. K-DID’s decentralized identity (DID) framework allows individuals to control and consent to the use of their data, mitigating the risks associated with centralized data storage. The partnership follows KOMSCO’s recent digital ID collaboration with Costa Rica, also based on the K-DID model.
Source: The Korean Times
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July 15, 2024 – by Ali Nassar-Smith
