Korean Banks to Roll Out Mobile ID Services This Year

Commercial banks in South Korea are set to introduce digital identification cards on their mobile apps within this year to expand their services into non-banking sectors, reports The Korea Times. The initiative is part of the Ministry of the Interior and Safety’s project to allow private companies to provide services linked to the public sector.

The new digital ID service aligns with the banking industry’s efforts to foster digital technology for growth, particularly in non-banking sectors. Users of these banking apps will no longer need to carry physical IDs for personal 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, with the ministry choosing these companies based on their customer bases.

The banks have also been expanding their app services to include shopping, sports event tickets, GPS-based driving routes, and maps. For instance, KB Kookmin Bank has introduced a mobile application process for passports, allowing applicants to pick up their new passports at district offices once ready.

In 2022, the South Korean government announced plans to use blockchain technology as the foundation for its digital IDs, with availability for anyone with a smartphone. The goal was to have approximately 45 million citizens enrolled within two years, potentially saving the government around 60 trillion won (about $42 billion) over a decade. That initiative aimed to facilitate a comprehensive transition to digital infrastructure, enabling all services to go online.

Earlie this year, South Korea and the World Bank announced a pledge to enhance digital identification systems in developing countries by leveraging 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 leaks and identity theft. The decentralized identity (DID) framework of K-DID allows individuals to control and consent to the use of their data, reducing risks associated with centralized data storage. The partnership followed KOMSCO’s recent digital ID collaboration with Costa Rica, also based on the K-DID model.

Source: The Korea Times

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(Originally published on Mobile ID World)