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ActiveX Plug-in Trap

ActiveX Plug-in Trap

If you want to do Internet banking in Korea, make on-line purchases  from Korea E-markets or even access some of the country information sites, you will be asked to install ActiveX, which may have been a good idea back in the 1990’s but no longer. More and more people have come to realize that installing ActiveX can put their computers at risk. However, we often have no choice in Korea, so some people have begun using an old dedicated computer for any transaction requiring the installation (often the repeated installation) of ActiveX. 

Techdirt, in a May 2010 posting,  explains the ActiveX situation in Korea as follows:
At the end of the 1990s, Korea developed its own encryption technology, SEED, with the aim of securing e-commerce. Users must supply a digital certificate, protected by a personal password, for any online transaction in order to prove their identity. For websites to be able to verify the certificates, the technology requires users to install a Microsoft ActiveX plug-in.

The trouble is ActiveX is only supported on one platform: Microsoft Windows. As a result, when the South Korean government made the technology mandatory for online e-commerce, the entire South Korean Internet sector became enslaved to Internet Explorer. It forced consumers to use Internet Explorer because it was the only browser ActiveX plug-ins were compatible with. By default, web developers optimized not only banking and shopping websites for Internet Explorer, but all websites. For developers, this just seemed logical. The result has been a decade-long monopoly in the Korean market, where virtually all Korean websites are optimized for Internet Explorer.

Eventually, the South Korean government noticed that it was totally out of step with the rest of the world in effectively forbidding important alternative technologies like iPhones or Android, and took steps to remedy the situation. A bylaw was created that said government websites must accommodate at least three different web browsers and in (July) 2010 they (the Korean government) withdrew the mandate governing the use of ActiveX plug-ins. But there was a catch.

If a company wants to stop using ActiveX plug-ins, it has to use an alternative technology that offers the same level of insurance. To get approval to use such a technology, they have to get approval from a government appraisal committee. The committee was formed over a year ago and has yet to make a single approval.

So even though the possibility of using something other than ActiveX is there, in practice there are simply no other options for secure transactions. A choice taken a decade ago to standardize on one technology has locked an entire nation into that platform, and it's proving extremely hard to escape.
And it's not just the local coders that are suffering: businesses, too, are hamstrung when it comes to innovation. As Kim Kee-chang, founder of the OpenWeb organization dedicated to expanding web accessibility in Korea, explained: "If people are thinking of opening up some service ultimately connected to payment they really have no chance in Korea," Kim said. "They are stuck in the payment stage and even if they could make it in Korea, they'd have little hope in an international market."

It's a classic lock-in due to network effects, aided and abetted by a thoughtless government decision all those years ago. As South Korea falls further and further behind in this regard, trapped in its fossilized world of ActiveX, it may well come to be seen as warning to other governments to adopt true open standards, if they want to avoid a similar fate.

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Last Updated on 2013-07-16

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