South Korea’s ICONLOOP launches blockchain KYC certification service
ICONLOOP, the South Korean-based blockchain platform, today announced a partnership with Shinhan Bank, Korea’s second-largest commercial bank, to issue KYC compliance certificates through its mobile app Zzeung, which uses ICONLOOP’s blockchain-based decentralized identity (DID) technology.
Once issued, the KYC compliance certificate can be used to open accounts with financial institutions and services, bypassing redundant KYC compliance processes. This case is the first commercialization of DID service for the financial sector in Korea.
Shinhan Bank-issued KYC compliance certificates powered by Zzeung will be applied to various non-face-to-face identity verification for Shinhan SOL mobile banking, including mobile OTP issuance, password change, and other customer verification needs.
In addition, Shinhan Financial Group affiliates, such as Shinhan Card, Shinhan Financial Investments, Shinhan Life, Orange Life, and Jeju Bank, are considering using Zzeung service within the next year.
Users with Shinhan Bank-issued KYC compliance certificates can easily be verified with other financial institutions, allowing faster onboarding for financial apps such as brokerage, credit card, and insurance accounts.
How it works:
Users are required to download the Zzeung mobile app and verify their identity using a Korean telecom service. In the background, a verifiable credential is issued via a public blockchain network to guarantee that there is no forgery or tampering of any information.
Next, users select ‘Shinhan Real-Name Authentication’, and then a Zzeung KYC compliance certificate is issued and stored on a mobile phone once Shinhan Bank verifies the users’ identity, a photo ID, and account ownership authentication (in accordance with the guidelines of the Real Name Financial Law). When submitting to other organizations, a special case for the regulation of innovative financial services is applied so that the user can resubmit after verifying the fingerprint without repeating the previous identity verification procedure. A private blockchain network is used to verify any forgery of identity information.
Zzeung is the main centerpiece of MyID Alliance, Korea’s largest consortium, with 77 members consisting of commercial banks, securities firms, local governments, e-commerce companies, and manufacturers. The Financial Services Commission (FSC) has approved Zzeung into the ‘Innovative Financial Services and Regulations Sandbox’ permitting KYC compliance certification and non-face-to-face identity verification. Zzeung’s security has been verified through deliberation by the Financial Security Agency.
“This issuance of KYC compliance certification with Shinhan Bank is of great significance because it is the first commercialization of DID services used in the financial sector in Korea,” said Jong-hyup Kim, CEO of ICONLOOP. “In the future, we will expand the Zzeung to all industries that require identity verification beyond the financial sector so that more users can experience the convenience of DID technology.”
“DID will be the starting point of the digital ID ecosystem that will expand in the future. It will develop into a platform for managing and transacting data as well as personal identity information,” said Hyun-ki Jang, Head of Shinhan Bank’s Digital R&D Center. “If various partners participate in the ecosystem starting in the second half of this year, the change of digital age will accelerate.”
Following Shinhan Bank’s lead, NH Nonghyup Bank and IBK Industrial Bank will also use Zzeung for KYC compliance certification issuing agency within this year. In the future, ICONLOOP will incorporate Zzeung with the members of MyID Alliance from various industries. The company plans to expand Zzeung service to provide various forms of identity authentication such as visitor authentication and qualification authentication.
Just a week ago, on August 19, 2020, ICONLOOP announced that Jeju Island, the country’s most popular domestic tourist destination, will use its Zzeung service to provide private, secure COVID-19 contact tracing to the island’s 15 million annual visitors.
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