Financial authorities will allow customers to shop online without having to go through a controversial verification system, which has often been blamed for complicating the payment process, especially for overseas users.

The Financial Services Commission and the Financial Supervisory Service said Thursday that they would revise the supervisory regulations on e-commerce as soon as the end of May or June.

The central issue is allowing credit card companies and payment gateway providers the autonomy to choose whether or not to ask customers for certification verification.

Under the new system, online shopping malls may either continue to use the conventional verification method or replace it with an alternative user authentication system.

“Payments by credit card should not require the current level of personal user identification as the customer still has time to call off an erroneous order until the actual payment takes place,” an FSC official said.

The market openness created by alternative safety systems will boost the competition among private information technology service providers and subsequently improve the overall technology level, the official added.

However, account transfers involve a real-time delivery of cash, and therefore will be excluded from the deregulation measures. Account transfers of 300,000 won ($280) or more will continue to require the certification.

The abolishment of the compulsory authentication system is largely in line with President Park Geun-hye’s drive to ease the country’s excessive level of regulations.

“TV viewers in China want to access Korean online shopping malls to purchase the outfits and accessories worn by hallyu stars, but are faced with the certification verification process,” Park had said.

She also pointed out that such complicated systems exist only in Korea, demanding that financial authorities reduce regulations to match the global standard.

It was for similar reasons that the FSC decided earlier this year that customers of overseas shopping malls should be allowed to make purchases without the certification verification.

“The deregulation will not only improve consumer convenience but also contribute to invigorating the e-commerce market, a sector which has huge growth potential,” the FSC official said.

By Bae Hyun-jung (tellme@heraldcorp.com)