Blockchain-based digital ID for safe and joyful world

Korea's ICT sector is highly digitalized and advanced across financial, public, and private infrastructures. However, due to the country's relatively small population and the dominance of large markets like the U.S. and China, domestic growth opportunities for companies like yours can be limited. We've observed that many Korean ICT companies are increasingly focusing on globalization. What key factors will support Korean companies in expanding globally and seizing new opportunities?

According to OECD evaluations, Korea is the overwhelming leader in digital government. I believe that the era of Web3 and digital transformation is approaching rapidly for all nations. When I refer to digital transformation, I mean not only digital IDs but also the broader infrastructure and services, including authentication, personal data management, digital voting, digital contracts, and cryptocurrency. The shift to these digital processes defines Web3, and this transformation will begin with digital ID systems. Korea's strength in digital government serves as a crucial foundation for our global expansion.

When discussing digital transformation, Estonia often comes to mind. Despite being a small country, Estonia has successfully implemented digital IDs for all its citizens and has since expanded into digital voting, digital contracts, and digital currency. This kind of digitalization represents the future of the global society. Similarly, Korea’s IT sector will advance through digital government initiatives and blockchain technology, which are at the heart of digital ID systems.

The President of Estonia mentioned in an interview seven to eight years ago that the country’s digital transformation began with issuing digital IDs to its citizens. Korea has followed a similar path by rolling out digital IDs, signaling the start of its own digital transformation. I strongly believe that this process will elevate Korea’s IT sector to new heights. Additionally, we have been involved in numerous digital ID projects overseas. Our goal extends beyond merely issuing digital IDs; we aim to establish the foundational infrastructure that enables digital transformation in those countries.

As many economies move towards digitalization, they will need to establish a connection between government agencies and private companies to build these models. However, this presents a series of challenges, such as national security concerns or scalability. How can Korea leverage its experience to contribute to global digitalization and compete with established American or European leaders?

When assisting other countries with digital transformation, we do not take a competitive approach by simply offering our solutions. Instead, we transfer infrastructure and technology to them. Government digitalization, especially the implementation of digital IDs and digital infrastructure, poses risks if it becomes dependent on a single country or corporation. That is why our technology is open-source. We provide the technology and allow each nation to customize it according to their unique needs. This is our primary focus.

In other words, our strategy is not to compete with the U.S., China, or other major economies. Instead, we support nations by transferring core technology so they can build their own digital infrastructure. Throughout this process, we offer education and community support. If additional assistance is required, we provide consulting services. This approach sets us apart from major tech companies that dominate the market through direct competition. Our goal is to empower countries to achieve digital transformation on their own terms.

Digital ID and authentication play a crucial role not only in the financial sector but also in the private sector, where you have some ventures. But primary, you collaborate closely with the government. Could you elaborate on your approach and the differences between these industries?

I believe that a country's digital transformation begins in the public sector. It starts with issuing digital IDs and collaborating with the government before extending to finance, commerce, and other industries. Our primary focus is on the issuance of government-backed digital IDs. Digital transformation in sectors like finance, commerce, and media is significantly more effective when digital ID adoption comes first. By establishing digital IDs as the foundation, the entire nation can transition towards a fully digitalized ecosystem, allowing other sectors to evolve naturally around this framework.

Looking at Korea, for example, blockchain technology has influenced commerce and the medical sector over the past 7–8 years. However, these industries have largely operated in silos, lacking full interconnectivity. True digitalization occurs when different industries and sectors are hyperconnected and compatible.

For instance, during the COVID-19 era, vaccination certificates were issued digitally. Universities also began issuing graduation certificates in digital form. However, these digitalized processes were fragmented and lacked interoperability. Without standardization and integration, digital certifications remain scattered across various platforms. When digital ID issuance is implemented at a national level, it establishes a unified foundation for digitalization, enabling all sectors to seamlessly integrate their services into a fully digital framework.

An introduction video of ‘OmniOne Digital ID’, a blockchain-based digital identity platform.

Government-led digitalization from the top down would likely require blockchain technologies to ensure security and completeness. Do you share this perspective?

Yes, I firmly believe that Web3 will begin with blockchain, and all digital transformation initiatives will eventually be rooted in blockchain technology. Since digital IDs are fundamentally based on blockchain, even though various networks may differ, I see blockchain as the foundation of Web3.

From an applied AI perspective, how do you assess the return on investment (ROI) in authentication and related solutions?

Our focus is on integrating AI into our solutions to make them more robust. For example, we use AI to detect abnormalities and enhance security measures.

When evaluating ROI, our AI-driven enhancements have proven highly effective. Gained a competitive advantage by integrating AI-powered deepfake detection into our mobile antivirus service.

Established in 2012, RaonSecure has grown into a leading IT security and authentication platform company, known for its groundbreaking achievements, such as launching the world's first FIDO-certified multi-channel authentication platform, OnePass, in 2015, and introducing the Mobile Driver’s License Service in 2022. Furthermore, RaonSecure holds the No. 1 market share, commanding 80% of the domestic biometric authentication market. Could you highlight the key milestones that have shaped its journey to becoming a leader in IT security?

Thirty years ago, I founded a company focused on PKI-based digital signatures. The question I constantly asked myself was: why do customers have to endure inconvenience when it comes to security? I realized that making security more user-friendly was essential, which led to the establishment of RaonSecure. "Raon" is a pure Korean word meaning "joy." Our slogan is to make IT both fun and secure.

Ninety percent of security breaches occur because security systems are complex and difficult for the general public to navigate. My goal was to start a company that would make security easier and more enjoyable. Authentication used to require OTPs, USB tokens, and other keys, which were cumbersome. I envisioned a simpler approach, leveraging smartphones, which people always have with them, and biometric authentication, such as facial recognition and gait analysis. This innovation made security more intuitive and accessible.

We started with mobile security and biometric authentication and later developed DID (Decentralized Identity), which integrates offline and online certifications into a single system. We are actively issuing digital IDs and recently made them open-source to expand our reach globally. This is one of the key milestones we are striving to achieve.

When discussing digital IDs, user-friendly security, and hyperconnectivity, I want to illustrate the kind of world we envision. Governments issue digital IDs, which can be used for both online and offline authentication. For example, if someone encounters legal issues or needs medical authentication, they can use their digital ID via their smartphone.

Consider this scenario: My digital ID contains my entire medical history from childhood. If I visit a hospital in the U.S., I can present my digital ID to access my prescriptions and medical records. If I travel to China and experience a medical emergency, the hospital there can instantly retrieve my medical history from Korea and the U.S. This level of hyperconnectivity is the future we aim to build. Regardless of the blockchain systems different countries adopt, our goal is to ensure seamless interoperability. Estonia, for instance, is a small country, but its digital ID system enables medical records and certifications to be universally accessible.

Another practical example is purchasing alcohol at a convenience store late at night. Currently, customers must present a physical ID, which contains personal information such as date of birth and address. This can be problematic, especially for women, as CCTV footage captures their details, potentially leading to privacy breaches and crime. With blockchain based digital IDs, only the necessary information, such as proof of being an adult, would be displayed, significantly enhancing security and reducing crime rates. I firmly believe in the power of blockchain based digital IDs to simplify security and improve privacy.

Could you explain the practical steps RaonSecure is taking to achieve this vision of a fully digitalized world?

The first step is to replicate what we have accomplished in Korea by introducing our digital ID technology to other countries. We are making this technology freely available as open source to facilitate its global adoption. Once digital ID systems are established, the next phase involves digitizing key sectors such as healthcare, including medical certifications and prescriptions. Subsequently, we aim to enable digital voting, smart contracts, and digital currencies. Throughout this process, RaonSecure will provide essential services and solutions.

The ultimate goal is for digital IDs and medical certifications issued in Korea to be recognized worldwide, enabled by blockchain-based hyperconnectivity. For example, the Canadian province of British Columbia already provides digital certificates, and California is in the process of launching blockchain-based digital driver’s licenses. In the future, all such certifications will be interconnected. Our mission is to accelerate this transformation by open-sourcing our foundational technology.

Did you know that not all 1.3 billion people worldwide have any form of identification? Many individuals born and raised in remote regions, such as the islands of the Philippines or parts of Africa, lack official IDs. Without identification, they cannot access essential services like healthcare, education, or government aid. This also makes them vulnerable to exploitation and crime. The World Bank has initiated the Id4D campaign, while the United Nations has included universal ID issuance as part of its Sustainable Development Goals (SDG). Their objective is to provide every person with a digital ID within a decade. RaonSecure's mission aligns with these global efforts, making digital ID issuance not only a business endeavor but also a significant social contribution.

To summarize, step one is to implement digital ID systems nationwide. Step two is to digitally transform critical infrastructure, with RaonSecure playing a central role. Step three is to ensure global interoperability of digital IDs through blockchain-based hyperconnectivity.

OmniOne Digital ID Service flow

For step two, you recently conducted a pilot project with the nation's largest healthcare company in the U.S. Could you provide more details about this project or similar initiatives, as well as the infrastructure solutions RaonSecure provides?

Due to confidentiality agreements (NDAs), we cannot disclose the specific companies we are collaborating with or the details of our project. However, in general, the services we provide include medical certificates, digital prescriptions, digital voting systems, polls, and surveys. We continue to innovate in these areas, working toward a more secure and digitally connected world.

Even a decade ago, I foresaw blockchain becoming integral, with applications such as digital IDs and NFTs. However, its association with cryptocurrencies has overshadowed its broader potential, specially within the public. Do you see this misconception as a barrier to adoption for users or institutions?

It is unfortunate that blockchain’s image has been shaped primarily by cryptocurrencies. Cryptocurrency is merely a token technology, a receipt for financial transactions. Blockchain, on the other hand, enables a much broader spectrum of services, such as voting, digital IDs, certifications, badges, and even digital currencies. This technology will continue to evolve in these directions.

I would also like to emphasize the significance of digital badges. Over ten years ago, various agencies issued digital badges as certifications, often displayed on platforms like major social medias. However, our goal is to create a unified system where badges are interconnected and can be used across different platforms and circumstances. This level of integration will ultimately drive broader adoption.

From what I understand, the primary challenge is adoption, whether by nations, institutions, or individuals. How do you approach governments and institutions to demonstrate that your system is simple enough for them to adopt, given that it is an open-source resource?

Developing nations often receive support from various governments and international organizations, such as the World Bank and the United Nations. We collaborate closely with these organizations and governments, providing open-source technology to help them implement digital solutions. We also support numerous systems integration (SI) companies in different countries, offering them core fundamental technology. If local SI companies lack the necessary expertise, we work with Korean SI companies to assist these nations.

In many cases, digital transformation does not begin solely with the issuance of digital IDs. Instead, digital ID issuance serves as the foundation for broader services such as digital voting, medical certification, and digital contracts. Once a country establishes digital IDs, it naturally paves the way for the expansion of other digital services.

Shifting gears, I’d like to discuss the development of your AI-powered platform for the metaverse. Your platform is used not only for cybersecurity but also for various other applications, such as the digitalization of physical goods and the creation of virtual environments. How do you see the metaverse evolving in the future?

When we first launched metaverse-based training and education, we started with an education center for our white-hat hacker team. We conducted the training online in the metaverse because we believed it would make learning more engaging. Given our expertise in cybersecurity, we were able to address challenges that other educational platforms faced, such as cheating and false attendance. Our security measures ensured that students had to attend every lecture, which, of course, they weren’t always happy about! However, this foundation allowed us to upload our educational content to the metaverse, and soon, many partners approached us with requests to upload their own services as well.

Our first external collaboration was in digital autopsy, where we performed virtual dissections on frogs and dogs. This marked the beginning of our metaverse services. Next, we introduced a drone pilot training and testing program. Since drone flight conditions vary significantly and real-world testing can be challenging, we provided a virtual environment where users could practice. We then expanded into training and certification for heavy equipment operators, nurses, and physical therapists.

One particularly notable initiative was our virtual animal autopsy. When we first introduced it, many medical universities in Korea adopted it as a training tool for their students. The government also supported this initiative, as it aligned with the concerns of animal rights activists who opposed live animal dissections. By leveraging the metaverse, we provided a humane yet effective alternative for medical training.

RaonSecure has reported steady growth over the past five years, with a 2024 revenue of USD 42.67 million, reflecting consistent performance in the IT security market. Looking ahead to the next three years, where do you see the company's growth coming from? How do you envision its development?

Our primary revenue drivers remain our mobile security solutions and white-hat consulting services, both of which are growing at an annual rate of 20%. Looking forward, we see significant potential in expanding our digital ID solutions globally. Additionally, in the next two to three years, we plan to leverage AI, post-quantum cryptography (PQC), and metaverse-based education, which could become key pillars of our future success. While we achieved USD 42.67 million in revenue last year, our near-term goal is to reach KRW 100 billion. Over the next decade, we aim to secure KRW 500 billion in revenue.

The goal of this report is to bring together various leaders in the Korean ICT sector, creating a roundtable of insights. From your perspective, what would you like our readers to take away from this interview?

RaonSecure is more than just a cybersecurity company. We are a driving force behind the digital transformation of nations and societies, acting as an enabler of the Web3 ecosystem. We want to be remembered as a company that makes Web3 both secure and engaging. In the past, when people asked me what kind of company RaonSecure is, I would say we specialize in cybersecurity. Now, I tell them we are the enabler of Web3.

For more information about RaonSecure, explore their website: https://www.raonsecure.com/en/main