Monday, November 16, 2020

 

New Transparent Security - Blockchain

 



 

Blockchain in Korea

 

Blockchain in Korean generally has a negative view. Majority of Koreans tend think if crypto currency when they hear the word blockchain. While the crypto currency created an initial interest in the blockchain industry early in Korea, with the Kimchee Primmum, the sector shattered leaving a negative prospective for blockchain in the domestic market.

 

Blockchain technology did not have the chance to bloom. In 2017, blockchain was introduced and prioritized as one of the primary technologies of the future. Numerous projects were launched while the market showed sudden growth. However, unstable cryptocurrency and government restrictions demolished the industry, resulting in delays to or ending major projects.

 

There are still opportunities for blockchain technology to grow. In late 2017, when the government restricted cryptocurrency, the enterprise value dropped rapidly. Yet in 2019, the enterprise value and investment in the industry increased again. The market size of the blockchain industry is small and slow than other government-supported technologies (5G, AI and others), but it is still showing some growth. 

 

Experts estimates that in 2022, the total market size would grow to KRW 356.2 billion, with a growth rate of over 60%.

 

Estimated Market Value

 

Estimated Market Size

2019

2020

2021

2022

84.6

136.6

220.6

356.2

Unit: KRW billion

Source: National IT Industry Promotion Agency

 

Regulation issues

 

Virtual asset, personal information and electronic signature are the three core regulations which affecting blockchain technology in Korea.

 

The virtual asset policy was first established due to the crypto currency issues, where the Financial Service Commission announced the ‘Guide Line to Anti-virtual Currency Laundering.’ After this announcement, the public and media generated a view that crypto currency is not something that the government will support. However, currently the community, companies and government are trying to overcome this negative view and move on to develop the technology and apply it to various sectors.

 

The domestic personal information policies are considered to be overwhelming compared to how people actually use their information. As personal information is strictly regulated only limited information could be used. In January 2020, the 'Personal Information Protection Act', ‘Act on Promotion of Information and Communications Network Utilization and Information Protection, etc’ and ‘Credit Information Use and Protection Act’ were revised to support the use of technology dealing with personal information.

 

The possibility of a blockchain based electronic signature is currently debatable. The current official electronic signature is an authorization certificate. For blockchain electronic signatures to be plausible officially it requires modification from the current products. Moreover, on May 18th of 2020, a bill to discard the authorization certificate was proposed which suggests the potential that blockchain electronic signatures has a better chance in the future. 

 

Conclusion

 

The blockchain technology can be applied in various industries when regulations are more favorable to new technology. The potential that the blockchain can provide to the finance, security, medical, pharmaceutical and other industries can be unlimited. With the recent policies and the Korean New Deal, we believe that there will be a breakthrough for the technology which will provide the environment for blockchain to blossom.

 




IRC CONSULTING 
Suite 1705, Officia Building, 92, Saemunan-roJongno-gu, Seoul, Republic of Korea 03186 

서울시종로구새문안로92 광화문오피시아빌딩, 1705Tel: +82-2-737-3222,  http://www.ircconsultingkorea.com