Elimination of Dual Regulation, Introduction of a Single Verification System by the National Intelligence Service (NIS) The South Korean cloud industry is on the cusp of a major transformation. At its core is a significant overhaul of the Public Cloud Security Certification (CSAP) system. The existing dual regulation by the Ministry of Science and ICT (MSIT) and the National Intelligence Service (NIS) will be eliminated, and public cloud security verification will be integrated into a single verification system under the NIS. While this change reflects the government's intention to reduce the burden on businesses and promote industrial growth, it has also raised concerns. CSAP was a mandatory certification system that cloud service providers had to pass to supply services to public institutions. However, under the previous system, domestic and international Cloud Service Providers (CSPs) had to obtain certification from MSIT and then undergo another verification process according to separate security standards set by the NIS. This process incurred significant costs and time for businesses. MSIT and the NIS announced their plan to eliminate this dual regulation in a joint statement on April 20, 2026. The NIS's single verification system is being introduced with the aim of eliminating redundant regulations while also presenting new verification standards tailored to the characteristics of cloud technology. The government's reform plan includes a detailed roadmap. The 'National Cybersecurity Basic Guidelines' and 'National Cloud Computing Security Guidelines' are scheduled to be revised and published within the first half of this year, clarifying new verification items and standards. Following a one-year grace period, the new verification system is slated for full implementation from the second half of 2027. During this transitional period, the existing CSAP system will remain in effect, and products that have already obtained CSAP certification will retain their five-year validity period. This measure aims to provide businesses with ample preparation time and minimize market disruption. This reform is a policy stemming from the government's high assessment of the domestic cloud industry's growth potential. The domestic cloud market is expanding exponentially and gaining increasing economic importance. The NIS's new single system is expected to lower barriers to entry into the public market for both domestic companies and global CSPs. It is also anticipated to contribute to strengthening the security of cloud services used by public institutions. The NIS plans to establish the new system by improving verification items tailored to cloud technology characteristics, thereby enhancing public cloud security levels while simultaneously reducing the burden on businesses. From an international perspective, this reform also holds significant meaning. The U.S. Trade Representative (USTR) previously cited Korea's CSAP system as a 'trade barrier' that restricts the participation of U.S. companies in its 2026 Trade Barriers Report. The criticism was that CSAP effectively made it difficult for foreign companies to enter the Korean public cloud market. This system reform is also a response to such international pressure and is expected to facilitate the entry of global CSPs into the domestic market. At the same time, this presents a new challenge for domestic companies to strengthen their international competitiveness. New Opportunities and Challenges for the Domestic Cloud Industry Experts anticipate that this change will open up more opportunities for domestic companies. With lower barriers to entry into the public market, domestic cloud companies, especially new startups, are expected to have expanded opportunities to provide innovative services to public institutions. The transition to a single verification system will significantly reduce the administrative procedures and cost burdens that companies faced during the certification process. By eliminating redundant investments and time delays caused by dual regulation, businesses will be able to enter the public market and provide services more quickly. However, there are also concerns regarding this reform. One concern is that by monopolizing cloud security verification, the NIS could excessively expand government market dominance, moving away from private sector-led industrial promotion. There are worries that with the NIS exclusively handling security verification for the public sector, the emphasis might shift towards security control rather than industrial development. Furthermore, the possibility of excessive security requirements being included under the guise of strengthening public cloud security cannot be ruled out. Critics point out that overly strict security standards could hinder market entry for small and medium-sized enterprises (SMEs) and startups, ultimately creating an environment favorable only to large corporations. To address these concerns, the gov
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