South Korean companies are rapidly expanding their blockchain positions. The telecommunications company LG UPlus, which is part of LG Corp., launches an international payment network based on a blockchain technology. Also, the Korean Customs Service (KCS) entered into an agreement with Samsung SDS, a subsidiary IT firm of the Samsung conglomerate, in order to use its blockchain technology in the system of customs clearance of exports.
Payment solution of LG
A memorandum of understanding between LG UPlus, Taiwan's Far EasTone Telecommunications, Japanese SoftBank and American TBCASoft was signed last week.
With the help of a new service, users of one mobile operator will be able to carry out transactions in the payment networks of other operators. It is expected that the launch of a new payment network in the test mode will take place in early 2019. The blockchain will be used to quickly confirm transactions and will allow users to save considerably on commissions, usually levied when using bank cards for international payments. Creators of the project are sure that the payment network will be the first step in a whole series of future blockchain solutions for the telecommunications field.
Samsung SDS Project
Samsung SDS was founded in 2015. The release of the first business platform called Nexledger was held in 2017. Samsung SDS, a subsidiary of the Korean technical giant Samsung, introduced a certification platform for Korean banks, BankSign, based on distributed ledger technology (DLT).
The new platform will allow for a qualitative exchange of export documents between participants in the process of export trade at each stage of the process of the export of goods. The tool is also aimed at completely eliminating forgery of documents and making the entire export process more efficient. Nexledger allows clients to create smart contracts and conduct transactions in real time. Samsung SDS has already started developing its platform for international transportation. It is expected that the use of DLT will reduce costs in this sector by 20%.
WHY IS IT IMPORTANT?
- All these initiatives are in line with the general agenda of the South Korean government for taking blockchain in public services. The government allocates state funding for the introduction of technology.
- Earlier it became known that the authorities of South Korea will allocate twice as many funds to finance blockchain projects next year. Representatives of the Korea Internet & Security Agency also reported on plans to significantly increase the number of blockchain projects that specialize in managing supply chains in livestock, customs, online voting, real estate, electronic document management, and logistics.