South Korea seeks to transform trade finance using blockchain technology by 2021
Wed, 16 Oct 2019, 11:16 am UTC
The government of South Korea is pushing to implement blockchain technology in the country’s trade finance sector by 2021, CoinDesk reported.
On October 14, Finance Minister Hong Nam-ki introduced the Development Plan for Digital Trade the 4th Innovation Growth Strategy Conference. According to the plan, the government intends to leverage cutting-edge technologies, including blockchain, artificial intelligence (AI) and 5G, to revitalize the trade environment and strengthen exports.
“We will build a digital trading platform that can be easily and conveniently used in all stages of export, such as contracts, customs and logistics,” Hong said.
In addition to the digital trading platform, the government plans to implement blockchain technology in a number of areas including document storage and verification, foreign exchange transactions and more.
Foreign exchange transactions are expected to be conducted using blockchain technology within months. Hong said that this will help companies significantly reduce transaction costs associated with their export business. The government is targeting December 2019 to bring together seven banks to establish the service.
Another area where the technology will be deployed is the u-Trade-Hub 2.0 (uHT 2.0) – a nationwide trade transaction integration platform that supports more than 400 million trade transactions a year. The objective is to leverage blockchain to accumulate information on exports, foreign investment and international projects, which will be made available to companies that want to expand globally.
The document further reveals a plan to organize a Digital Trade Blockchain Council, which will be composed of banks, banking associations, trade associations, and the Korea Trade Network (KTNet), which specializes in the automation of trade processes.
The government has been making a number of efforts to implement blockchain technology in various departments and sectors. This includes food products, defense acquisition, citizen cards, driving licenses, and medical services, among others.
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