Legality of eSignatures in South Korea
Background
Cloud-based electronic signatures have become pivotal in streamlining business processes, digital transactions, and sustainable digital practices across South Korea and globally. With the country’s rapidly growing economy, eSignature service providers, which embody a balance of legal certainty, efficiency, and environmental sustainability by aligning ecological responsibility in the digital age are indispensable. Thus, it is vital to understand the key factors for implementing eSignatures in South Korea.
South Korea has been historically reliant on personal seals (Inkan or Dojang)1. In 2020, the nation shifted from a government-controlled certification monopoly to a technology-neutral system, fuelling rapid adoption in banking, real estate, contractual agreements, e-government services, and corporate filings among other sectors. The Electronic Signature Act (ESA) and the Framework Act on Electronic Documents and Transactions provide a strong legal foundation for eSignatures, granting them enforceability equal to handwritten signatures or physical seals2. However, certain documents may still require traditional wet signatures depending on different local laws, thus it is advisable to consult legal experts.
Beyond efficiency, eSignature platforms must guarantee users robust security protocol, including high-level encryption and authentication mechanisms with proper audit trails to prevent unauthorized access and affirm the document’s authenticity. BoldSign offers these security provisions to meet regulatory compliance and security.
Although electronic signatures are advantageous and widely accepted, adherence to legal regulations, ensuring security, and choosing an easy-to-use service are essential for successful deployment in South Korea.
Overview of eSignature in South Korea
The following statutes establish the electronic signature validity:
- Electronic Signature Act (ESA), formerly known as the Digital Signature Act.
- Framework Act on Electronic Documents and Transactions (FAEDT)
- Civil Act of South Korea
Framework Act on electronic documents and transactions
This act clarifies and emphasizes the legal relevance, security, and reliability of electronic transactions and documents and creates infrastructure for their use. The Korean government, as per the act, formulates and implements policies that protect the personal information of users and ensure the reliability of electronic transactions3. Thus, every business entity must comply with the regulations when using or providing electronic services. It also guarantees the use of encrypted products for security purposes4.
Electronic Signature Act
The current primary electronic signature law in South Korea is the Electronic Signature Act, last wholly amended on June 9, 2020, by Act No. 173545. The law gives the types of eSignatures as6:
- Simple electronic signature
- Certified electronic signature
Simple electronic signatures (SES)
Simple electronic signatures are data in electronic form attached to or logically associated with an electronic document to identify the signatory. They include a scanned image and a typed name, among others. This is legally valid for most general purposes where there is a clear intent to sign.
Certified (Qualified) electronic signature (CES)
A certified electronic signature is an electronic signature that is7:
- Uniquely linked to the signers
- Capable of identifying the users
- Signer can maintain control of the electronic signature creation device
- Linked to the data in a way that any subsequent change to the data is detectable
Uniquely linked to the signer
A secure electronic signature must be uniquely connected to the person using it. The signature must be uniquely created with methods only the signer can access, like a private key and confidential information, to verify their identity.
Use and incorporation remain in their sole control
The person using the secure electronic signature must have sole control over the means of creating the signature. Typically, this requires managing a key pair or two-factor authentication, with the signer exclusively holding the private key to prevent signature forgery.
Identify the person using the technological process
The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, Personal Identification Number (PIN), email address, or company registration number.
Track down any alterations made after signing
It is essential to preserve the authenticity of the signed document. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s IP address, timestamps of key signing events, and location, providing proof of identity, timing, and signature place.
Summary table
| eSignature types | Unique features | Legal validity |
|---|---|---|
| Simple electronic signature | Include:
|
|
| Certified electronic signature |
|
|
Recognition of foreign electronic signatures in South Korea
International electronic signatures are recognized where a certification‑service provider has obtained an internationally accepted assessment from a recognized assessment body8.
Scope and limitation of eSignature transactions
The use of electronic signatures is not legally recognized for all document types. Some transactions are appropriate for eSignatures, while others are not. Below is a brief analysis and a summary table of these transactions.
Documents that can be signed
Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:
- Legal opinions
- Software license agreements
- Offer letters
- Memoranda and internal correspondences
- Non-disclosure agreements
- Purchase orders
- Human resources
- Procurement
- Business contracts
- Leasing agreements
- Educational documents
- Employee onboarding, etc.
Specialized cases
The electronic signature regulations lack an express provision on which transactions are not to be completed in electronic form. However, caution is to be taken when dealing with the following documents:
- Wills and testamentary documents
- Notarial documents and deeds
- Power of the attorney
- Surety (Guarantee) contracts
Summary analysis
| Permissible transactions | Specialized transactions |
|---|---|
|
|
How does BoldSign help
The following elements of compliance available within BoldSign can be used to comply with South Korean eSignature laws:
- Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer’s email address. This ensures that the document is only accessed by the intended signer and cannot be tampered with.
- Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds another layer of security to the signing process.
- Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
- Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
- Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has given their consent.
- Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.
- QES compliance: BoldSign offers fully compliant qualified electronic signatures (QES) that are simple, secure, and legally binding across the EU. QES guarantees that your essential documents are protected with the highest level of eSignature security, giving you peace of mind in your digital transactions. Using BoldSign, you can confidently manage your important documents while ensuring compliance with EU regulations.
Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.
However, Syncfusion’s officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations are subject to frequent changes, and the information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.
Syncfusion makes no warranties of any kind, including but not limited to the information or the product, whether express, implied, statutory, or otherwise. To the maximum extent permitted by law, Syncfusion disclaims all conditions, representations, and warranties, whether express, implied, or statutory, with respect to this information, without limitation of any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.
Syncfusion nor its officers, directors, stockholders, employees, affiliates, attorneys, accountants, or agents shall be liable for indemnification, nor does this create an express or implied, contractual or statutory, equitable or otherwise, under this agreement. The officers, directors, stockholders, affiliates, attorneys, accountants, or agents will not have any liability in any form.
1 Electronic Signature Act, Amended by Act No. 17354
2 Ibid., Article 3(1)
3 Framework Act on Electronic Documents and Transactions Ibid., Article 12
4 Ibid., Article 14
5 Electronic Signature Act, Amended by Act No. 17354
6 Ibid., Articles 1(2), 2(6) & 3
7 Ibid.(N5), Articles 2(3), 3 & 18
8 Ibid.(N5), Article 11
Built to scale with your business
Close deals faster, cut costs, and stay compliant. From startups to global enterprises, thousands trust BoldSign to simplify document signing.
Years in business
Customers
Countries
Built-in features
Why our customers love us
The true measure of our impact lies in the stories shared by our valued partners.
Google Integration, 25 free sends, dashboard, Signature font options, App is very responsive / fast, Emails between sender and signer are good, Audit trail is very helpful, No account needed for signer is great, Mobile experience is good for signer.
Jeremy Kadlec
Edgewood Solutions
Switch to BoldSign already! It's intuitive to use and affordable for small businesses. I never have to worry about the status of a document because with BoldSign I know. Plus, they let you program the frequency of reminders signatories receive. I'm so glad to have found it!
Sarah Dillard
Kaleidoscope
We’re using BoldSign successfully in our b2b SaaS platform - as it’s embedded to allow seasonal farm workers and their agribusiness employers to e-sign their employment onboarding documents for the first time. It’s part of the total solution saving the workers and HR managers 50% more time compared to their traditional pen/paper manual process.
Scott Prince
Croft
Sign up for your free trial today!
30-day free trial- No credit card required
- 30-day free trial
- No credit card required
