Shinhan joins hands with KT for blockchain

Shinhan Bank Digital Strategy Department head Jang Hyeon-ki, right, stands with KT Platform Service director Kim Hak-joon during a signing ceremony at the KT head office in central Seoul, Tuesday. / Courtesy of Shinhan Bank

By Jhoo Dong-chan

Shinhan Bank has formed an alliance with KT to jointly develop a blockchain technology-based service.

The nation's second-largest lender by total assets said Wednesday that it signed an agreement with KT to jointly establish a blockchain platform to capitalize on regional governments' recent moves to introduce digital vouchers.

The voucher can be used like cash in a certain region, and local governments said earlier this year they will roll out the digital voucher as part of their efforts to revitalize local economies across the country.

Under the deal, KT is expected to set up a blockchain platform and network infrastructure while Shinhan takes charge of developing related financial services such as payment and account systems within the blockchain platform.

"Shinhan's strategic partnership with KT is a part of our efforts to introduce a convergence between finance and ICT," said Shinhan Bank Digital Strategy Department head Jang Hyeon-ki.

"The blockchain technology will upgrade customers' financial activities to a new level."

Understanding blockchain as a core technology for a digital banking system in the future, Shinhan established a research center exclusively for blockchain technology under its Digital Strategy Department for the first time among Korean banks.

Utilizing blockchain technology, the bank is developing an integrated certification system responding to various financial activities such as online wire transfer and foreign exchange.

KT has also operated a taskforce exclusively for blockchain technology since 2015. The mobile carrier rolled out the KT Network Blockchain, an integrated telecommunication network applied with the technology.

"The partnership with Shinhan Bank will be an opportunity to expand the boundaries of KT's blockchain technology into the financial sector," KT Platform Service director Kim Hak-joon said.

"KT will continue doing its best in contributing to the nation's blockchain industry."

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