The Tiger on the Peninsula Is Digitized: Korean E-Commerce Law as a Driving Force in the World's Most Computer-Savvy Nation

Abstract

I. HISTORICAL BACKGROUND A. South Korea: The Tiger on the Peninsula B. The World's Most Computer-Savvy Nation C. Korean E-Commerce: Dramatic Growth II. OBJECTIVES OF THE ARTICLE III. ELECTRONIC SIGNATURES A. The First Electronic Signature Law: Utah B. Attributes of a Digital Signature System IV. KOREA'S FRAMEWORK ACT ON ELECTRONIC COMMERCE A. Electronic Messages B. E-Commerce Security Issues: Consumer Protections C. E-Commerce Policies and Strategies for Their Achievement D. Increasing Participation in E-Commerce E. The E-Commerce Mediation Committee F. Application to Foreign Persons or Entities V. KOREA'S DIGITAL SIGNATURE ACT A. Goals of the DSA B. Selected Definitions C. Legal Recognition of Certified Digital Signatures D. The Regulation of Certification Authorities E. Certificates F. Security and Reliability of the Certification Process G. Governmental Adoption of Digital Signature Certification Policy H. Criminal Offenses and Penalties VI. E-COMMERCE TRANSACTIONS CONSUMER PROTECTION ACT A. Purpose, Overlaps with Other Acts, and Selected Basic Definitions B. Limitations and Precedence of the CPA C. E-Commerce Transactions D. Protection of Consumers' Rights and Interests E. Inspection and Supervision F. Corrections and Penal Surcharges G. Criminal Violations VII. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS A. Recent History of Korea B. The Tiger on the Peninsula: Economic Growth, Computer Adeptness, and Rise of E-Commerce C. Korean E-Commerce Law D. Recommendation: It Is Time for the World's Most Computer-Savvy Nation to Address the Online Piracy Problem ABSTRACT South Korea has been classified as one of the Southeast Asian Tigers because of its high rate of economic growth during the past twenty-five years. One recent aspect of the economic growth has been the remarkable surge of e-commerce since 2000. During the next five years, South Korean e-commerce is expected to grow even more. One of the drivers of the e-commerce proliferation is the high degree of computer literacy among the South Korean people, facilitated by the fact that South Korea enjoys the greatest percentage of citizens with high-speed internet connection in the world. Another important driver of South Korean internet commerce--and the primary focus of this Article--is its e-commerce law. The Framework Act on Electronic Commerce (ECA) of 1999, implemented by the Ministry of Commerce, Industry and Energy (MCIE), set the stage for electronic proliferation. The ECA recognizes the legal validity of several forms of electronic signatures, commensurate with the trend in global electronic signature law, and established basic consumer protections even at the earliest stage of South Korean e-commerce development. The Digital Signature Act (DSA) of 1999 is a companion statute to the ECA. The DSA focuses on one type of electronic signature--digital--and was implemented by the Ministry of Information and Communications (MIC). The MIC is responsible for licensing and regulating of Certification Authorities, the verifiers of the authenticity and integrity of digital signatures and the electronic records to which they are affixed. The DSA also establishes criminal penalties for the fraudulent use of digital signatures. While the ECA and the DSA are noteworthy, the E-Commerce Transactions Consumer Protection Act (CPA) of 2002 differentiates South Korean e-commerce law from the herd. The CPA provides some of the best--if not the best--consumer protections for e-commerce transactions in the world. The CPA is implemented by the Federal Trade Commission (FTC) and includes the imposition of criminal penalties for its violation. The CPA underwent a major overhaul in 2005 that will become effective on April 1, 2006. …