South Korea’s Ministry of Science and ICT revealed a Blockchain Technology Development Strategy on June 21. The ministry has earmarked a budget of over $200 million to help develop blockchain-based technology.
The South Korean government announced plans to finish fundraising for the project by 2022. They plan to help develop over 10,000 industry professionals and 100 companies, in a bid to advance the country’s blockchain technology industry.
With the aim to provide the country with a competitive edge in the world of blockchain technology, the government plans to streamline investments in a few different directions.
Pushing Pilot Projects
Next year, the ministry aims to expand support for six blockchain projects. The projects span different fields and highlight the benefit blockchain technology brings to many industries. The following projects focus on:
- Electronic document distributions between countries
- Marine logistics
- Easy real estate
- Online voting
- Personal customs clearance
- Management of livestock records
Blockchain as a Service
The Ministry of Science and ICT also announced plans to support the development of Blockchain as a Service (BaaS). The ministry wants to assist firms which specialize in the development of blockchain technologies. To do so, the government will provide around 10 BaaS vouchers. These vouchers guarantee that the government will make payments to small and medium-sized enterprises (SMEs) on a yearly basis.
Pushing for Legislative and Regulatory Clarity
The government announcement also revealed that the ICT ministry will organize several research teams. The teams will work to help strengthen current laws that hinder the mainstream adoption of blockchain technology in South Korea.
It also appears that clearing away legislative differences between conventional legal contracts and the emerging smart contracts based on blockchain technology is a priority for the research teams. The announcement also hints at possible tax benefits for firms that develop blockchain technology.
This announcement is good news for Korea’s local cryptocurrency field, with the government loosening restrictions and creating a friendlier ecosystem for crypto. Back in May of this year, South Korea’s National Assembly recommended allowing ICOs under specific conditions and created protections for investors.