South Korea sees blockchain as ‘golden opportunity’

Getting your Trinity Audio player ready...

South Korea sees blockchain as a golden opportunity and is looking to utilize it. This is according to Koo Yun-cheol, the Vice Minister of Strategy and Finance in the East Asian nation. In a recent blockchain-themed meeting, he stated that the government was working with private firms to give the country a firm grip on the technology.

South Korea has been one of the biggest markets for blockchain technology, and this is set to continue, with the government planning on competing with Europe and the United States. According to the vice minister, the blockchain industry is expected to grow by 80% annually. South Korea must therefore position itself to exploit the golden opportunity blockchain offers or risk losing out to other countries.

Koo revealed that the government will offer financial support to the industry. For starters, the government’s budget for the next financial year will allocate funds to a number of blockchain projects. He stated, “It is possible to preempt the industry if the government effectively supports it in stages. The government must play a more active role in creating the initial market.”

The South Korean government has been conducting a public pilot project to determine the size of the blockchain market. This project will receive more focus from the government, the vice minister said, pointing out that the system needs to be reorganized.

While the U.S. and Europe have established sizeable leads in many technology fields, South Korea can still compete with them in regards to blockchain, he stated. South Korea isn’t too far behind these two regions and with enough investment, the Asian country can become a global blockchain leader, he believes.

South Korea is home to one of the most vibrant blockchain and digital currency industries in the world. The country is home to top global exchanges including Upbit and Bithumb. Recognizing the vast potential it offers, global exchanges have been establishing presence in the country as well. Huobi opened its Korean subsidiary two years ago, with OKEx also having local operations.

South Korea has already proven that it is willing to support blockchain development with the launch of a $3 million grant in March. The grant is under the Ministry of Science and ICT and will seek to support up to nine blockchain companies.