Samsung SDS to build blockchain-based customs system

Samsung SDS, an IT subsidiary of South Korean tech giant Samsung Group, has announced that it will build the world’s first blockchain-based export customs clearance system in an initiative led by the Korea Customs Service (KCS), The Korea Times reported.

According to a press release dated September 14, 48 organisations and companies have entered into an agreement with the KCS to implement the project.

The KCS revealed its plan to tap into the potential of cutting edge technologies such as blockchain and big data in March. Later in May, it signed a amemorandum of understanding (MoU) with a number of e-commerce companies to implement a blockchain-based e-commerce customs clearance platform.

In July, the agency selected Samsung SDS to join the project to build the advanced export customs clearance system.

For the project, Samsung SDS will use “Nexledger” – its blockchain platform developed for industries and corporations, announced last year. The company said that it demonstrated the innovation and viability of Nexledger last year when it successfully concluded a blockchain trial for shipping industry involving 38 entities from the public and private sector.

Nexledger is capable of handling large quantities of transactions in real-time and offers a smart contract function, which enhances security and convenience, Samsung SDS said. The platform has already been applied to diverse industries including financial, manufacturing and logistics businesses.

"We will enhance our leadership in the logistics blockchain area by implementing the project successfully and contribute to raising the nation's competitive edge in logistics," said Kim Hyung-tae who leads the logistics business unit at Samsung SDS.