South Korea to provide alternative online payment systems

South Korean government is to roll out an alternative online payment system to help foreign shoppers have simpler access when shopping.

The Government of South Korea is gearing up to roll out an alternative online payment system to provide foreign shoppers easier, simpler access to local shopping malls.

The recent move is also being seen as a part of the government deregulation drive of payment system to boost the economy, as reported by english.yonhapnews.co.kr.

The Ministry of Science, ICT and Future Planning and the Financial Services Commission (FSC) was quoted by the publication as saying that they will lift the KRW300,000 (US$293), limit and authorize multiple payment technologies that meet government criteria.

In addition, the government will also support online vendors, auction sites and other commercial users to use alternative e-commerce settlement methods provided by credit card firms and payment gateway firms, including Paypal or a mobile SMS authentication process.

“The plan is aimed at increasing customer convenience in shopping and purchasing online,” the ministry told the publication.

“We will tighten security monitoring of companies who keep settlement information and customer data.”

South Korea requires Internet shoppers to install ActiveX software on their computer and download an authentication program provided by local financial institutions. But the program does not work well with all browsers, thereby limiting the online payment options.

To avoid this problem, the science ministry is in the process of developing a non-ActiveX online authentication system expected to be released by August, which will be distributed to local firms from September.

FSC vice chairman Jeong Chan-woo told english.yonhapnews.co.kr: “We have put priority on data security in cyberspace, so consumer convenience lagged behind many advanced countries. Based on the strengthened security protection, we will streamline the closed online payment system in order to improve customer service.”