The main objective is to support the validation of blockchain technology in 2020.
As part of a development plan, two South Korean ministries approved the granting of USD 3.2 million to boost blockchain technology in different projects. The financing will allow local blockchain technology companies to continue with the development of technological tools and the growth of the industry in the country.
The ministries in charge of the project were the Ministries of Science and Information and Communication Technologies (ICT), and the Ministry of Promotion of the Information and Communication Industry. The project aims to “Support the validation of blockchain technology in 2020”, and they hope to launch several pilot tests of blockchain technology tools, according to a report published on March 16th.
Both ministries are based on the allocation of resources. These two public bodies are known to implement a plan to award 450 million Won (approximately USD 360,000) to a total of nine projects that the team will select after a free submission of bids. This will encourage participation in the development of innovative projects in the Asian country.
The winning projects must have certain criteria to be selected. These characteristics include the feasibility of conducting the tool, the current performance, the objectives and knowledge of the company, the results they can achieve, and the jobs they can generate when embarking on the project. These criteria would ensure the profitability of financing and the near future of the industry and technology.
Main Objectives of Financing
The announcement highlighted that one of the main objectives of the project is not only to promote the development of blockchain technology but also to promote the use of this technology in the country. Furthermore, the selected projects must provide a strong social and economic value that would be maintained in the future.
This project is also part of the initiative to promote technology companies in South Korea, according to the Minister of Information and Communication Technologies, Park Yoon-Kyu. “We plan to support national specialty companies to grow rapidly and activate the ecosystem in the early phase of the blockchain market”, he said.
The project not only seeks to promote the development of blockchain technology but also to create a business model that adapts to the use of these technologies. They also add the use of other technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI).
At the end of the announcement, details of the financing conducted by the project last year were revealed. The data highlights the registration of more than nine copyrights, as well as the application to get five patents and two additional rounds of investment.
Financing results to be an important piece for the development of blockchain technology in the country. This is because, according to some local media reports, the country faces a deep crisis due to the growing outbreaks of covid-19.
On March 5th, the national Parliament approved a new law that would allow a permit system to be created for national exchange companies. This is another step that would support the adoption of blockchain technology in the region to work for more technological benefits for the community.
By María Rodríguez