South Korean Trade finance is about to take a leap in the blockchain according to the news by the local press. The government is on a spree to consolidate a foundation for seamless digital trade, at the same time cutting down the blockchain costs by around 90%, with introducing blockchain technology.
The Digital Trade Blockchain Council is to include banks, trade associations, along with the Korean Trade Network (KTNet), specializing in the trade automation processes. These endeavors are the fundamental components of the Digital Trade Development Plan of the South Korean government. Blockchain, 5G, and AI will be employed to renovate the ecosystem for digital trade and consolidate exports.
The initiative will be consummated by the year 2021, while foreign-exchange trades will be done with the technology in a few upcoming months.
For trade finance, applicable documents will be allocated to the distributed ledger technology in order for them to be accessed by economic establishments, whereas export bonds are to be made publicly accessible in a similar manner to let banks validate the issuings redundancy, faults, and duplicity.
Finance Minister Hong Nam-ki informed about the nation’s Digital Trade Development Plan on October 14. The application of high-end technologies, including blockchain, AI, and big data is to digitize the Korean trade and its financial landscape by the year 2021. Finance Minister Hong Nam-ki spoke:
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.
Industry Chug, the Vice Minister, Commerce, and Industry said that these innovations are specialized to make leads in the digital business market worldwide and boost the Korean export backing online, stating that:
We will make trade more convenient by integrating and providing trade information and export support services of government and trade organizations.
Union Mobile, the 4th greatest mobile giant in South Korea, disclosed the rollout of its new blockchain-based project, ELYNET. The undertaking intends to employ blockchain technology to enable efficient telecommunication for users who are dependent on one telecom service carrier, letting them use the services for data transfer without any external fees or contracts.
Another noteworthy element of the strategy that will wield blockchain technology is the u-Trade-Hub 2.0 endeavor. The technology is to unify all the data around exports, international projects, and foreign investments and make it accessible to the firms who are shaping up their offshore presence.
Financial trading based on blockchain is something that inhabits global affinity and interest, with a lot been done on the grounds already. Voltron brings the world’s gigantic financial organizations together, whereas China Construction Bank has reportedly been processing massive amounts on its trade-finance portal based on blockchain. UBS also initiated we.trade a while ago this month.