One of South Korea’s ‘Big Four’ Banks Strike Partnership With Telecom Giant KT

South Korea’s second-largest bank Shinhan Bank has struck a partnership with the country’s second-largest telecoms provider KT Corp with the aim of creating a new blockchain-based platform.

According to reports, the new platform is expected to improve on the recent move by regional governments in the country to launch digital vouchers.

In its role, Shinhan will share its considerable commercial banking experience, with its 2017 asset amounting to $302.6 billion.

The said government program allows digital vouchers to be used like cash within certain locations. The partnership between Shinhan and KT comes before the planned launched of an economic stimulus program that includes digital voucher scheme.

Shinhan will be responsible for creating the new platform’s financial services including payment fulfillment and account management, whilst KT will develop the essential blockchain infrastructure that will support the system.

Expressing his views on the partnership between the two firms, Shinhan Banks’ Head of Digital strategy Jang Hyeon-ki noted:

“Shinhan’s strategic partnership with KT is a part of our efforts to introduce a convergence between finance and ICT. The blockchain technology will upgrade customers’ financial activities to a new level.”

This is not Shinhan’s first venture into blockchain technology. At the beginning of the year, in line with its vision of the blockchain as a primary component of future banking systems, the bank’s Digital Strategy department developed a dedicated research center for blockchain technology for the first time in the South Korean banking industry.

The banking is also planning to create a blockchain-based integrated certification system for several financial activities such as wire transfers and foreign exchange transactions.

Talking with KT’s regarding its excitement to work with Shinhan Bank on the new project, KT Platform Service director Kim Hak-joon noted that “The partnership with Shinhan Bank will be an opportunity to expand the boundaries of KT’s blockchain technology into the financial sector. KT will continue doing its best in contributing to the nation’s blockchain industry.”