South Korea is planning to build a new digital trade foundation by using blockchain technology. The foundation would be responsible for digitizing the framework of Finance and Trade in South Korea. The government aims to integrate new technologies like AI, Big Data, Machine Learning and blockchain to create a better financial ecosystem that takes into account the technologies of the changing world. The government plans to digitize the Korean Finance and Trade ecosystem by 2021. The Finance Minister of South Korea Hong Nam-ki said about the plan:
We will build a digital trading platform that can be easily and conveniently used in all stages of export, such as contracts, customs, and logistics
The Korean Government also aims to reduce the cost of trade finances related to digital trade and e-commerce by 90% by the introduction of the trade foundation. South Korea is one of the leading players in the global digital trade space, and the government believes that the initiatives will support its current standing and will also upgrade the online export numbers for South Korea. The Vice Minister of Commerce and Industry Seung-il in a statement added:
We will make trade more convenient by integrating and providing trade information and export support services of government and trade organizations.
The document uploaded by the Korean Government also highlights some new initiatives that the government is taking to promote blockchain-based foreign exchange transactions. The government is all set to partner up with seven Korean Banks and start offering this service in 2019. Another initiative is the U-Trade-Hub 2.0 initiative, which will use blockchain technology to bring information about exports, international projects, and foreign direct investment into a single platform and would be able to give companies some insight into things happening in the international market.
The South Korean government’s initiative is not one of a kind, blockchain trading platforms are areas of much interest globally. Voltron a trading platform based on blockchain has brought together major players in the global trading space onto their platform. China Construction bank is also claiming to be processing huge volumes of transactions on its trading platform.