South Korea is set to introduce a facial-recognition system for mobile-phone activations in July, aiming to curb identity fraud tied to so-called “burner phones,” even as legal ambiguity, privacy concerns and implementation gaps—particularly for foreign users—fuel debate over the rollout.
The Ministry of Science and ICT said on June 22 that the system will verify subscribers by matching real-time facial images with identification documents during mobile-phone registration.
The policy targets a rise in non-face-to-face sign-ups, which authorities say have enabled widespread identity theft and the distribution of illegal prepaid phones used in voice-phishing and other financial crimes.
According to data from the National Police Agency, altnet mobile carriers accounted for a disproportionate share of detected illegal phone cases, representing 76.5% in 2022, 74.9% in 2023, and rising to 92.3% in 2024.
The government initially planned a full rollout in March following a pilot launched on December 23 of the prior year but extended testing through the end of June to improve technical stability and reduce disruption for users and carriers.
Officials say the system does not store facial images, retaining only verification results and limiting use to identity confirmation purposes.
Privacy regulators have raised concerns. The Personal Information Protection Commission said facial data qualifies as sensitive personal information under South Korean law and requires explicit legal grounds, noting that current statutes do not clearly authorize its use for mobile-phone activation.
The National Human Rights Commission has also warned that mandatory facial recognition could affect constitutional rights, including privacy, freedom of expression and access to information.
To address these concerns, the ministry said alternative verification methods will be offered for users who opt out, including document-based checks and a government mobile identification application.
However, those alternatives—such as submitting residential registration certificates or using digital ID systems—could add friction for users and potentially weaken the system’s effectiveness if widely used.
The ministry argues that while clearer statutory authority would be preferable, current law does not explicitly prohibit the deployment of facial-recognition-based verification.
Foreign users remain a key unresolved issue. Authorities say mobile fraud involving foreign-registered accounts has been significant, but a full biometric system for non-citizens will not be introduced at launch due to technical constraints, with a phased rollout planned later in the year.
Government data submitted to parliament show that between 2020 and 2024 there were 124,889 cases of illegal phone registrations using domestic identities and 106,018 involving foreign identities, underscoring the scale of the problem across both groups.
Critics say the decision to proceed in stages may limit the policy’s effectiveness, while adding that even legitimate users could face longer activation times and additional verification steps.
Some industry officials also question whether applying the system across all mobile carriers is proportionate, given that most detected fraud cases originate from low-cost mobile virtual network operators.
One industry official said policy timelines should not outpace operational readiness, warning that premature implementation could increase friction across retail channels and undermine confidence in the system.
