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South Korea plans to launch digital identity based on blockchain technology

10 minute read
To exploit emerging technologies to promote economic growth, The Government of South Korea seeks to provide more convenient and reliable digital ID and e-signature services to its citizens. By adopting blockchain technology that ensures data privacy, Relying on the high technological culture of the Korean people.
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To exploit emerging technologies to promote economic growth, The Government of South Korea seeks to provide more convenient and reliable digital ID and e-signature services to its citizens. By adopting blockchain technology that ensures data privacy, Relying on the high technological culture of the Korean people.

Since the advent of digital identifiers, Experts focused on it as a solution that offers many economic and social benefits, To the extent that the World Bank called it an invention that would "change the rules of the game", By reducing costs, increasing the efficiency of government work, and even redrawing the political landscape.

Because South Korea is one of the first countries to adopt digital transformation that has made its society more connected, open and engaged, The government enacted the Digital Signature Law in 1999 and the Certified Certification Service the following year. Where legal bodies have been established that grant certificates proving the identity of the site online without documents, It obliged citizens to use them in financial transactions. Gradually, The presence of these certificates deepened to be used in real estate procurement, civil services, taxes, online shopping, and military service.

However, the mandatory certifications hinder other services and technologies, The freedom of citizens to choose the means of electronic signature that suit them shall be restricted. It also needs to be renewed annually, and complex passwords that can be forgotten, and specific operating systems and browsers. These technical and service gaps are what prompted the government to abolish mandatory use in 2015. But many institutions still demand it.

Then the COVID-19 pandemic emerged to make digital transformation inevitable, Interactive activities declined, The indirect economy has grown, Offline plastic ID cards are no longer reliable and are vulnerable to forgery, manipulation and loss.

As an alternative to these certificates, The Ministries of Interior and Safety, Science and Information and Communication Technology and the Personnel Affairs Department launched the digital identity service project. A plan is designed to provide citizens with personal cards that use blockchain technology to complete tasks, make payments, explore virtual worlds and stimulate competitiveness in the e-signature market.

In principle, Digital IDs perform simple verifications that do not require photocopying documents or waiting to receive authentication codes to establish electronic accounts on government websites, Or attend in person to transfer funds, receive a service, or even participate in elections.

A digital ID card can be easily created by storing the national card information on a smart device, And employ them in a variety of uses. Because the Korean experience relies on blockchain technology, They are resistant to forgery and modification, This means that it overcomes the limitations of existing identifiers, This technology is an advanced and shared database that allows data to be stored and shared across blocks linked to each other.

At the beginning of 2021, The granting of the civil service card to some ministries began as an experiment before converting it into an integrated system for the rest of the country, Where employees received their cards through the smart application, They were able to use them to pass through security gates, enter the National Library, open personal computers and other things. In the coming stages, Mobile electronic copies of national certificates of entitlement, disability cards, foreigner registration and driving licenses will be issued, The latter will store the information on the user's mobile phone, It will allow him to choose which information he wishes to share, It will be usable whether or not an internet connection is available.

Since the abolition of mandatory accredited certificates, The government has granted legal authority to many electronic signature methods, Citizens can now prove their identity using their mobile phone number, bank account or residence record number and without renewing the software each year.

For now, The government has signed a memorandum of understanding with e-signature service providers to help use it within its business. Such as issuing tax returns and receiving civil complaints and proposals, The Ministry of Interior and Safety launched a joint platform for the certification of digital signatures, It is committed to increasing sites that use simplified authentication, It also established the regulatory framework that includes formal operating standards, which she called the "sandbox" or regulatory laboratory, A metaphor for an experimental environment that derives its name from the space in which children play freely, The government wanted to create an open space for technological innovations governed by more lenient regulations.

While digital cards eliminate many risks, They may face regulatory challenges such as invasion of privacy or people's distrust of it. But the plan does not allow the government access to information stored on phones. Using blockchain technology means that there is no central server to store information. Some point out that the Korean project is a bit ambitious. It aims to have 45 million citizens adopt digital identifiers within two years. It is a relatively short duration, Especially since it will require going to the civil services offices and paying the fees, But the government is counting on Koreans' penchant for quick acceptance of technology and their ability to quickly turn it into an essential part of their lives. Individuals, companies and institutions.

The Korean government estimates that digital identifiers of all kinds could generate $42 billion in GDP over 10 years.

This technology will save time and effort in the administrative, health and tax fields, and the expansion of consumer credit, Trade facilitation and fraud reduction, Securing jobs within new, competitive and equitable markets.

References:

https://www.mckinsey.com/industries/public-and-social-sector/our-insights/how-governments-can-deliver-on-the-promise-of-digital-id

https://dgovkorea.go.kr/contents/blog/111

https://www.bloomberg.com/news/articles/2022-10-16/south-korea-aims-to-boost-economy-with-digital-id-on-blockchain

https://www.itu.int/hub/2020/05/how-the-republic-of-korea-became-a-world-ict-leader/

https://www.scmp.com/tech/policy/article/3196183/south-korea-plans-blockchain-based-digital-ids-joining-other

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