South Korea

MS, 공공 SaaS 진입 가시화되나…업계 "외산 솔루션 확산은 아직 더뎌"

ZD Net Korea | Local Language | News | Jan. 14, 2026 | UndeterminedTech Development/Adoption

Microsoft (MS) is advancing efforts to enter the public Software-as-a-Service (SaaS) market in South Korea with its Microsoft 365 (M365) offering. The company is reportedly pursuing the Korea Internet & Security Agency (KISA) Cloud Security Assurance Program (CSAP) "Ha" grade certification for M365. Achieving this certification would mark MS as the first global tech giant to actively seek entry into the public SaaS market, enabling M365’s introduction in public institutions even in network-isolated environments.

Despite this progress, industry experts note that institutional certification does not guarantee rapid market adoption. While foreign cloud services such as Amazon Web Services, Google Cloud, and MS Azure have obtained certifications in the infrastructure-as-a-service (IaaS) domain, actual penetration in the public sector remains limited. SaaS, which involves direct linkage of public institution work data to external services, poses greater security and accountability challenges than IaaS, making adoption more cautious and slow.

A domestic cloud industry official pointed out that although major IaaS providers have secured procurement registrations and partial market entry, contract wins or practical usage within public institutions have been negligible. This official suggested that even if M365 secures its Ha grade certification in the SaaS domain, similar slow uptake can be expected.

The push for SaaS Ha grade certification by MS is seen as a strategic move following Azure’s earlier attainment of the IaaS Ha grade, which helped establish an institutional foundation for public sector entry. However, MS and KISA have declined to confirm details about the application or assessment process. Industry insiders emphasize that beyond certification, actual use cases and trust are critical factors for foreign SaaS solutions to gain meaningful traction in the public sector, predicting that broad adoption will require significant time even after regulatory approval.

MS, 공공 SaaS 시장 첫 노크...외산 SW 국내 확산 신호탄될까

ET News | Local Language | News | Jan. 14, 2026 | UndeterminedTech Development/Adoption

Microsoft is considering entering South Korea’s public Software-as-a-Service (SaaS) market, marking the first move by a global big tech firm into this sector. Unlike AWS and Google Cloud, which have focused on Infrastructure-as-a-Service (IaaS), Microsoft aims to provide office and collaboration tools directly to public officials. The company has applied for a 'Ha' grade Cloud Security Assurance Program (CSAP) certification for its Microsoft 365 (M365) SaaS product with the Korea Internet & Security Agency (KISA). This is the first application for CSAP certification for a SaaS product by a global tech firm.

Previously, foreign software companies like Oracle and SAP entered the public market through installations on public agency servers or domestic cloud infrastructures. However, a recent government reorganization of the CSAP into a graded system now allows SaaS supply via logical network separation at the 'Ha' grade, creating new opportunities for firms like Microsoft. MS’s prior 'Ha' grade certification for its IaaS platform, Azure, facilitated this move. Domestic software companies are closely monitoring Microsoft’s advances, anticipating intensified competition as other global tech firms such as Oracle, SAP, and Salesforce may follow.

Microsoft faces technical challenges to meet the strict KISA certification requirements, particularly regarding the Korean Cryptographic Module (KCMVP). To comply, MS may need to limit some M365 features, including the generative AI function (Copilot) and global unified authentication (Entra ID). These exclusions are due to restrictions on real-time data transfers abroad, which affect AI functionalities that rely on global servers. Internal debates continue within Microsoft about accepting these limitations to secure certification.

Chosun Ilbo | English | News | Jan. 14, 2026 | Climate Change

The South Korean government has allocated over 1 trillion Korean won for indoorization projects at five coal-fired power plants to install roofs and structures that prevent coal dust from spreading. These indoor coal storage facilities, designed to last over 30 years, are being built at plants with scheduled closures within 2 to 12 years, creating a significant mismatch between investment and facility lifespan. For example, the Hadong Power Plant is receiving 165.7 billion won for indoorization, yet several units will be decommissioned just two to five years after project completion. Other plants including Taean, Dangjin, Boryeong, and Yeongheung are also slated for closure by the mid-2030s.

Experts argue that less costly alternatives such as water spray systems, windbreaks, and dust covers could similarly reduce coal dust emissions, potentially saving tens of billions of won annually. A 2023 Canadian report found that while enclosed structures reduce coal dust by about 90%, water spraying can achieve up to 95% reduction. The indoorization projects, which require complex engineering including pillar-less roofs as high as 20-story buildings, were introduced under the Moon Jae-in administration in 2019 despite questions regarding their feasibility given planned power plant closures.

South Korea stands out among coal phase-out coalition members as the only country pursuing new indoor coal storage projects after 2020, whereas regions like the EU and the Americas with similar 2040 phase-out targets have not initiated such investments. China, with its carbon neutrality target set for 2060, continues to maintain coal storage sealing. The accelerated coal phase-out under the Lee Jae-myung administration has intensified concerns, particularly given coal’s role as a stabilizing energy source amidst renewable energy fluctuations. Critics highlight the inefficiency and taxpayer burden of constructing expensive, temporary infrastructure destined for early dismantlement.