South Korea’s Bold $35 Million Leap into Blockchain Development

Groundbreaking Investment in Blockchain

The South Korean government is taking a substantial step into the future with a hefty $35 million investment aimed at developing blockchain technology in the upcoming year. As reported by Korea Economic Daily on November 8, the Ministry of Science and ICT is refocusing its financial efforts on distributed ledger technology (DLT) to foster a vibrant ecosystem.

Collaboration Across Government Ministries

In a meeting that saw the convergence of various significant players, including the Ministry of Information and Communication and the Democratic Party of Korea, consensus was reached to ramp up the budget threefold. Vice Minister of Health and Welfare underscored the collective agreement, highlighting how critical this technology is for South Korea’s future.

Boosting Blockchain Projects for 2019

The Ministry of Science and ICT has been active this year, receiving a staggering 72 project applications from 41 different institutions. They’ve picked six promising contenders for further development in the public sector. Looking ahead, the ministry plans to expand the portfolio by doubling the number of selected projects in 2019, with a focus on allowing three to four blockchain initiatives driven by private sector innovation.

Support Services for Startups

Next year, the Ministry of Information and Communication will step up to the plate, offering essential technical support, verification, and consulting services to blockchain startups. This kind of backing is crucial for fostering innovation and ensuring that these new projects can thrive in a competitive market.

A Unified Vision for the Future

The second vice minister of the Ministry of Science and ICT shared a hopeful outlook, stating, “everyone agrees that blockchain is a technology that will change the future.” He emphasized the need for legislative and institutional support from the National Assembly, marking a pivotal moment for the development of South Korea’s blockchain industry. This sentiment echoes previous announcements from KISA about the government’s plan to allocate around $9 million for blockchain initiatives across both public and private sectors.

Caution in the Cryptocurrency Sphere

However, it hasn’t all been smooth sailing. The Financial Services Commission (FSC) has put investors on notice, warning that putting money into cryptocurrency funds may breach the Capital Markets Act. This warning serves as a reminder that while the government is investing heavily in blockchain, a cautionary approach to the associated risks in the cryptocurrency landscape is still very much in play.