South Korea: new alternative payment system to boost local ecommerce

Monday 28 July 2014 13:38 CET | News

The South Korean government has revealed plans to introduce an alternative online payment system to offer foreign shoppers access to local shopping malls as part of its deregulation drive to boost the economy.

The financial authorities have removed the authentication system that limited foreign shoppers from making direct purchases, but many shops and stores are still using the process for payments of more than USD 293 (300,000 KRW), citing security concerns.

The Ministry of Science, ICT and Future Planning and the Financial Services Commission will lift the USD 293 limit and authorize multiple payment technologies that meet government criteria.

They will encourage online vendors, auction websites and other commercial users to use alternative ecommerce settlement methods offered by credit card firms and payment gateway firms, such as PayPal or a mobile SMS authentication process.

South Korea requires internet shoppers to install on their computer ActiveX, a software framework that controls a computer’s operating system, and download an authentication program provided by local financial institutions.

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Keywords: South Korea, alternative payment system, online payments, ecommerce
Categories: Payments & Commerce
Countries: World
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