04-07-2025 
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Kyrgyzstan is taking up the challenge of transforming the Middle Corridor by leveraging emerging technologies and collaborating with global agencies and regional players.
The head of the economic ministry and Representative to the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), Nurbek Maksutov, disclosed plans to digitalize the Middle Corridor, a trade route linking Central Asia and Europe that provides an alternative to longer sea routes.
In his keynote speech at a high-level World Trade Organization (WTO) meeting, Maksutov revealed that the plan’s focal point will be improving digital trade in the Corridor. He highlighted several policy recommendations to members of the UN forming the core of the Corridor.
The ambitious project will start by analyzing current issues impacting digital trade along the Corridor. Maksutov confirms that infrastructure continues to be a significant challenge. Being majorly landlocked without access to shipping routes, he notes that infrastructure for data exchange and transit procedures is central to digitalization plans.
For Maksutov, the easiest step for the Middle Corridor is adopting the data exchange standards recommended by UN/CEFACT. A combination of harmonized data standards will improve cross-border transactions across Central Asia while enhancing the situation for small and medium-sized enterprises in the region.
At the WTO meeting, the International Trade Center (ITC) unveiled a plan to improve existing collaboration between the European Union and Central Asian countries via the Middle Corridor.
With global digital transformation gathering steam, the adoption of emerging technologies is also gaining ground, and it’s not impossible for Kyrgyzstan to adopt these in its Middle Corridor ambitions. Blockchain technology and smart contracts are among those that can be considered for cargo tracking and compliance purposes, while artificial intelligence (AI) and the Internet of Things (IoT) can eliminate unforeseen supply chain disruptions.
In terms of infrastructure, member countries of the Middle Corridor may have to spend a fortune on 5G and cloud connectivity to power the push toward full-scale regional digitalization.
On the home front, Kyrgyzstan is embracing emerging technologies, targeting blockchain to improve the efficiency of processes. The Central Asian nation is advancing toward a central bank digital currency (CBDC), the digital tenge, while also issuing licenses for digital currency exchanges and regulating Bitcoin mining operations.
Kazakhstan, a key hub in the Middle Corridor, is the region’s leader in blockchain, with a string of educational initiatives launched to deepen its talent pool.
South Korea’s nationwide roll out of digital IDs
Elsewhere in Asia, South Korea has completed the commercial launch of its digital identity cards for both residents and foreigners, with the final stages taking place in the cities of Seoul, Gwangju, and Busan.
The digital IDs are essentially digital versions of previously issued national IDs but with additional functionalities, including near-field technology (NFC), to allow users to issue their digital IDs by tapping their mobile phones on the cards. A Ministry of the Interior and Safety statement revealed that digital IDs rely on blockchain for encryption and data storage.“A user is limited to one mobile ID on one smartphone in his or her name, and biometric verification is required to prevent identity theft,” the ministry said. “A user can immediately call his or her telecommunication service provider to terminate the digital ID in case of a lost smartphone.”
New national ID issuances will include a digital version for mobile phones. The ministry stated that these digital IDs will hold the same legal validity as traditionally issued ID cards.
The latest digital IDs will be used for identification purposes and to access public functionalities. Holders of digital IDs can also utilize them to open bank accounts and interact with local financial services. This initiative has received support from leading financial institutions in South Korea, including Shinhan Bank, KEB Hana Bank, Busan Bank, Jeju Bank, and Jeonbuk Bank.
Several banks are looking to recognize digital IDs for foreigners. The report mentions the Industrial Bank of Korea, Kookmin Bank, and Woori Bank as potential financial institutions in the first group.
In other developments, authentication platform Raonsecure has rolled out an OmniOne badge for Korea University, facilitating digital badge issuances for students. On the other hand, Handcomwith is pushing the frontiers of biometrics with the rollout of an artificial intelligence (AI)- powered solution for the local healthcare sector.
Recent streaks by South Korea are intended to digitalize industries that have remained largely unchanged for decades. Apart from the blockchain-powered digital IDs, South Korea is eyeing the launch of a central bank digital currency (CBDC).
The country is experimenting with digital payment vouchers to replace physical vouchers made of paper and plastic. While blockchain forms the core of South Korea’s digitalization drive, the country is sinking up to $7 billion to integrate AI into its initiatives.
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