South Korean government-backed decentralized identity initiative attracts major banks

Four South Korean major financial institutions, including the Shinhan and NH Nonghyup banks, have recently joined a new decentralized identity initiative. The program has been created by the local government. Two major payment processors – BC Card and Hyundai Card – have also joined the program, bringing the total number of participants to 11. 

According to a CoinDesk Korea report, the program, which was first released in July 2019, is now officially named as the Initial DID Association. The consortium now includes Samsung Electronics, KEB Hana Bank, Woori Bank, as well as Korea’s three major mobile carriers – SK Telecom, KT and LG U+. It also includes Koscom, an IT company 76.6 percent owned by the Korea Exchange.

The project is backed by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA). The project is designed to develop a product that enables the secure storing of personal identification information using blockchain technology. Users of the system can prove their identities for online transactions as well as for the validation of qualifications or credentials. 

Initial, which is expected to be functional by 2020, will be first used for certificates from six Korean universities, as well as for English test scores. It will later be used in the submission of loan application documents, such as income tax withholding and loan certificates.