South Korea’s central bank planning
biometric payment standards
30 November 2015 12:05 GMT

South Korea’s central bank plans to develop standards for biometric identification that is used to authenticate digital transactions, according to a new report by the bank.

In a document on the increasing popularity of e-payments, the Bank of Korea revealed that the Committee on Financial Informatization Promotion (CFIP) will develop the technical standards before the end of the first half of this year, and then test such services in the latter half with domestic commercial banks.

“Some banks have already introduced fingerprint recognition, but the technique has been rather limited due to the high costs,” the Bank of Korea explained, reported Business Korea,

“These days, the focus is shifting to vein and iris recognition, and many ATMs outside of Korea allow cash withdrawal based on the biometric information in users’ veins in their fingers, palms, etc.”

The report divided e-payment services into five categories including SMS-based ones, mobile cards, and e-wallets, and mentioned their similarity to existing services, security concerns, conflicting interests of industries and regulations as the factors limiting their popularization.

In January, the Financial Services Commission and the Financial Supervisory Service announced measures that aim to support the convergence of IT with banking industries - introducing and expanding financial technology (fintech).

The nation's two financial regulators are also planning to cut the size of minimum capital requirements – for firms that want to run e-banking businesses, set up digital currency companies and facilitate digital money transfers - by more than 50 percent in the mid to long term.