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.
서울시 종로구 새문안로 92 광화문 오피시아빌딩, 1705호 Tel: +82-2-737-3222, http://www.ircconsultingkorea.com
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