Financial trade in Korea is steering fast towards the blockchain. A recent local report published the story on the basis of an authentic report from the company. The complete transformation of the company could be achieved by 2021, according to the report, and transactions pertaining to foreign-exchange are planned to be powdered with the blockchain technology in the upcoming few months.
On the fronts of trade finance, necessary papers would be filed over the blockchain in order for them to be available to all the financial organizations, whereas export agreements are to be cataloged in the same way, making them accessible to all. This will ensure that the regulatory bodies can confirm the authenticity of the records by duplicacy checking of the transactions.
The efforts are primary ingredients for the development strategy of the nation in the digital revolution of trading, whose pioneer had been Hong Nam-ki, the Finance Minister. This plan took off on the 14th of October, according to which the blockchain, as well as other prominent technologies like 5G and artificial intelligence, will be employed to renovate the trade setting and consolidate 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,
The Vice Minister of Commerce and Industry Chung Seung-il also added that
We will make trade more convenient by integrating and providing trade information and export support services of government and trade organizations.
A team will be set up for administering the Digital Trade, which will be accompanied by a membership that will include banks, banking institutes, trade organizations, and the Trade Network of Korea (KTNet). All of them are in some way or the other associated with trade automation processes.
The report also highlights one another agenda behind the initiative, which is to promote the foreign exchange trades in blockchain and cryptocurrencies. It also has the target of uniting the seven banks together by the end of 2019 to officially inaugurate the offering.
One more noteworthy element in the strategy is the employment of blockchain in the u-Trade-Hub 2.0 ( 2.0) undertaking. It is to make use of blockchain to garner an exhaustive reservoir of data on exports, international projects, and foreign investments, which will be made available to the firms who wish to expand their presence across the borders.
The trade finance based on blockchain is the element of considerable interest worldwide.
Earlier HSBC was also reported to have collaborated with Korea in similar endeavors when the innovation director of distributed ledger Joshua Kroeker spoke in an interview that,
The biggest impact would be time. Time and transparency will help companies better manage their cash flow and working capital. I am here this week to reach out to Korean banks to collaborate on this blockchain platform for letters of credit.