Electronic Signature Laws & Regulations - South Korea

Electronic signatures are common in South Korea and are generally well accepted in the business community. They are regularly used to sign general business contracts, employment contracts, leasing agreements and other common types of contracts. Under South Korean law, an electronic signature has the same level of enforceability and admissibility as a “wet signature” provided that the electronic signature meets the legal requirements for validity. The laws around electronic signatures are well understood by South Korean courts and judges, and a number of South Korean court cases have upheld the validity of documents signed electronically.

In South Korea, the legal relationship between electronic documents and electronic transactions executed using electronic signatures is governed by the Framework Act on Electronic Documents and Transactions (FAEDT). The Electronic Signature Act (ESA) sets forth the basic legal framework for using electronic signatures. The ESA defines an electronic signature as a “piece of information in electronic form that is affixed on, or logically combined with, an electronic document in order to identify the signatory and verify that the electronic document has been signed by the said signatory.”

Under the ESA, electronic signatures and electronic seals will not be denied validity solely because it is in electronic form.

Under the ESA, there is an assessment and authorization system for electronic signature certification providers for consistency with international standards, the goal of which is to improve the reliability of electronic signatures and to provide information for selecting an appropriate digital signature authentication service. An electronic signature certification service provider may apply for a review by specified reviewing authorities to affirm its compliance with the electronic signature certification service standards. A service provider that has obtained such affirmation may publish its compliance with the service standards.

Special considerations

Transacting with public sector entities
Neither the ESA nor the FAEDT dictate special requirements for transacting with public authorities unless specifically required by another applicable law or regulation. However, documents that are required to be submitted to government offices cannot be submitted in an electronic form or with electronic signature.

Use cases that generally require a traditional signature
Neither the FAEDT nor the ESA expressly prohibit any documents or agreements from being signed electronically. However, under the FAEDT, an electronic document may be denied legal effect if another applicable law or regulation stipulates that the document cannot be signed or executed electronically. The examples provided under the FAEDT are:

• a document showing the intent of the guarantor to provide a guarantee/warranty (Civil Act, Article 428-2(1)) except for those prepared by the guarantor for the purpose of his/her business (FAEDT, Article 4(2)); and
• a holographic will (Civil Act, Article 1066).

Some laws (e.g. the Framework Act on National Taxes) explicitly require the use of particular electronic signatures, such as those that can verify the signatory’s real name.