Executive Summary
As global competition intensifies, each industry is accelerating software-centric innovation,
highlighting the growing importance of vertical software (industry-specific software). Vertical
software is becoming a core component of key industries, serving as a solution to industry-specific
regulations, workflows, and challenges. Consequently, demand for vertical software in sectors
such as finance, automobiles, and public administration is increasing, and governments in major
countries are seeking to strengthen the competitiveness of their key industries by fostering
vertical software. The US and UK, the leaders of the financial industry, are promoting financial
software development centered on blockchain technology and supporting the development of
smart tools for a one-stop approach to fintech regulation. Meanwhile, Europe has announced
its Future Vehicle Initiative, SDV (Software-Defined Vehicle), to lead the automotive industry
and is investing in open source development and automotive software capabilities. To secure
the competitiveness of Korea's key industries, it is crucial to develop measures to strengthen
vertical software capabilities.
To this end, this paper analyzed vertical software cases in the financial and automotive sectors
to develop policy measures based on their characteristics. Vertical software in the financial
sector has demonstrated a drive toward regulations for safe financial transactions and improved
financial service quality. Know Your Customer (KYC) software, which verifies financial transactions,
faces persistent demands for diversification or simplification of authentication methods and
concerns about the resulting financial breaches. Fraud Detection Systems (FDS), designed to
prevent and monitor financial incidents, aim to support financial safety through accurate and
rapid detection technology. Vertical software in the automotive sector is moving toward a path
that allows for both compliance with increasingly stringent regulatory standards for safe driving
and software security and the adoption of new software technologies. Product engineering and
design software, which supports the precise design of components and complete vehicles, provides
accurate simulation capabilities to ensure compliance with product safety standards during the
design phase and establishes collaborative systems to enhance design efficiency. The SDV platform's
ability to verify compliance with software security standards for finished vehicles is becoming
a key competitive advantage. Its importance is also being emphasized in building a collaborative
ecosystem encompassing parts suppliers and software developers.
Vertical software requires regulatory compliance, industry expertise, and functional
specialization to address industry-specific challenges. Considering these characteristics, joint
efforts between businesses and the government are crucial to strengthening domestic vertical
software capabilities. Companies must recognize that vertical software can be a driving force
for corporate growth and develop strategies that focus their products and technologies on meeting
vertical software demand. The government needs to develop customized new software-based
convergence services and module technologies tailored to each industry. Furthermore, fostering
software safety and security experts who meet industry-specific regulatory requirements is crucial.
Furthermore, developing guidelines and tools to lower barriers to entry for vertical software
compliance is crucial.