Online Transaction Security
At the deregulation-related meeting on March 20 presided over by President Park, there was an indication that the reason that Chinese people cannot buy the extremely popular “Cheonsongeeh Coat” in China is attributed to Active X. In the meantime, Eight out of ten reportedly have trouble because of Active X.
According to a poll conducted by the Federation of Korean Industries (FKI) targeting 700 people nationwide, 78.6 percent of respondents said they wanted Active X software to be discontinued, while 88 percent said they experienced some sort of difficulties because of Active X.
The poll also showed that 84.1 percent of respondents wanted the development of new software to replace Active X, so they can conduct online transactions more easily without worrying about security.
Active X is a proprietary Microsoft technology that allows the execution of local computer programs via commands in a web site viewed with the Internet Explorer web browser. This method of launching local computer programs at a web site’s behest has become an integral part of the country’s Internet security environment.
The lobbying organization argued that if Active X is scrapped, such a move can help South Korea reduce its 720 billion won (US$668 million) deficit in its international e-commerce trade while attracting more buyers at home and abroad.
Because the current Korean Internet security paradigm requires the execution of proprietary desktop software, it is not really appropriate for mobile platforms. In particular, the current system requires users to create authentication certificates issued by local authorities, and these local authorities require a national ID or alien registration number to issue the certificate. This requirement makes it impossible for foreigners to buy products online from Korean shopping malls.
The FKI said 79.1 percent of poll respondents complained that they encountered hassles when purchasing products online, while 71.7 percent said they had trouble in bank transactions.
According to the Korea Institute for Industrial Economics and Trade, the size of South Korea’s online shopping sector is around 2.91 trillion won (US$2.69 billion) or 0.24 percent of its GDP. In contrast, numbers for the US stood at 1.24 percent of its GDP and China at 1.68 percent.