South Korea’s Silicon Valley Takes Another Step Forward with Blockchain Technology
Seongnam, a major satellite city in South Korea, is expanding its blockchain-powered payment program by issuing new digital gift certificates.
Kyunghyang Shinmun, a leading national news outlet, reported that a mobile application called the “Chak” app will manage Seongnam’s blockchain infrastructure. The app is being developed by the Korea Minting and Security Corporation (KOMSCO).
The Seongnam project aims to make the city’s existing blockchain system more accessible to older residents and middle-aged citizens who may be unfamiliar with the technology. It also seeks to promote contactless payment methods during the COVID-19 pandemic.
News organizations reported that three types of digital gift certificates will be supported at roughly 45,000 participating stores and locations throughout the city. The different types correspond to cash, debit card and mobile card formats.
This new initiative will enable customers to use alternatives to Seongnam’s current mobile payment method for Sarang gift certificates—avoiding steps like scanning a merchant’s QR code, entering the purchase amount and verifying a simple password.
Seongnam is well-known for its Pangyo Tech Valley, an IT complex that hosts the headquarters of many high-profile South Korean tech companies, including the Kakao Group, AhnLabs, Nexon and SK Telecom.
Another blockchain effort underway in the country involves developing a blockchain-based toll payment system for national expressways.
KEB Hana Bank, one of South Korea’s largest commercial banks, will collaborate with the Korea Expressway Corporation, a state-supported highway operator, to implement the project.
The system is expected to launch before the end of the year and will connect digitally with Hana One Q, KEB Hana’s mobile banking app. Drivers will be able to manage toll payments, defer charges and receive free refunds.
“We will continue expanding tailored non-face-to-face (contactless) services for the public by applying blockchain technology as part of Korea’s version of the digital ‘New Deal’ policy to help lead the global economy after the coronavirus,” said Kwang-Ho Lee, head of the sales department at the Korea Expressway Corporation.
Additionally, the South Korean government plans to invest more than $48.2 billion in blockchain and other Industry 4.0 technologies by 2025. The government’s goal is to accelerate the digitalization of all industries to better prepare the country for the post-pandemic era.