South Korea’s Ministry of Foreign Affairs to verify financial power of attorney using blockchain

South Korea’s Ministry of Foreign Affairs has announced a blockchain pilot that will aim to verify the authenticity of the notarized financial power of attorney from diplomatic office.

Part of the government’s core innovation projects, the project will be carried out in cooperation with the Korea Financial Telecommunications and Clearings Institute (KFTC).

The solution will be first piloted at the Embassy of the Republic of Korea in Japan and the Consulate General of the Republic of Korea in Los Angeles. It will also see participation from 14 domestic banks including Shinhan, Woori, KB Kookmin Bank, KEB Hana, NH Nonghyup, Citibank, KoreaPost and others.

Currently, Korean nationals residing abroad have to face a lot of inconvenience in matters relating to the handling of FPOA (Financial Power-of-Attorney), due to the existing authentication process.

The government is now looking to adopt blockchain to streamline the process. The system will record FPOA on the blockchain, which in turn will allow view the history of the issued FPOAs and enhance related processes through real-time status verification by banks.

The service is expected to enhance the stability and credibility of the financial power of attorney process through diplomatic offices. It will also make the process faster and easier as the authenticity of the notarized financial power of attorney can be done in real time.

Last month, the country’s Ministry of Science and ICT announced that it will run a second study group to promote the adoption of blockchain technology. The government is also keeping a tight watch on the cryptocurrency market following the recent surge in bitcoin price.

[The article has been written using a translated version of the press release.]