South Korea's major financial firms are coordinating development of blockchain technology. The Korea Financial Investment Association convened 21 financial investment firms and five blockchain compani
South Korea's major financial firms are coordinating development of blockchain technology. The Korea Financial Investment Association convened 21 financial investment firms and five blockchain companies under a new memorandum of understanding. The accord creates a blockchain consortium that will serve as a think tank for the domestic capital markets.
"This consortium is the first case in South Korea where multiple financial firms make use of blockchain," said Park Sun-moo, managing director of NH Investment & Securities. "It will contribute to the realization of the essential value of blockchain and maximization of the convenience, security and efficiency of financial transactions."
The IT Committee of the Korea Financial Investment Association will share research and case studies with the consortium, manage the secretariat operations, and deliver technical training. The secretariat will concentrate on developing business opportunities for members and establishing platforms for them to use.
The consortium has outlined future projects. Members will deploy a personal authentication platform in 2017. In 2018 and 2019, the group will research clearing and settlement automation. An over-the-counter trading platform is targeted for 2020.
The Financial Services Commission announced the consortium initiative in November. Kim Yong-beom, head of the FSC's secretariat, said "with the creation of the consortium, momentum is expected to start for spearheading the development of technology and service in the blockchain field, rather than passively following the footsteps of advanced nations."
Yesterday, Lotte Card rolled out a blockchain-based biometric authentication system for its payment app. One of South Korea's biggest card companies, Lotte Card tapped Blocko, a blockchain startup, to supply the technology and its Coinstack platform. Blocko has also collaborated with the Korea Exchange, JB Bank, KISA and Paygate on blockchain projects. "(South) Korea is one of the countries that are the most actively adoption blockchain technology," said Won-Beom Kim, CEO of Blocko. "Blockchain technology is expected to be widely adopted by the Internet of Things (IoT) industry, the healthcare industry, the public sector, as well as the financial industry next year."
The Korean Exchange launched the Korea Startup Market last month, a venue for trading startup equity stakes. The exchange uses Blocko's Coinstack platform for document and identity authentication.
