South Korean Trade Businesses Ask for Enactment of Blockchain Fundamental Act

Apr 03, 2018

South Korean trade businesses are requesting enactment of Blockchain Industry Development Fundamental Act to innovate international trades. They are voicing their hopes for South Korean Government to quickly establish ways to promote South Korea’s blockchain industry that will cover entire trade fields such as protection of personal information and electronic certification including financial fields such as electronic financial transaction.
Korea International Trade Association (KITA) made an announcement that it recently sent a petition titled ‘Main Regulations That Impede Growth of New Industries’ that includes opinions on 11 regulations including Blockchain Industry Development Fundamental Act.
KITA included various regulations that need to be improved to strengthen foundation of new driving forces of South Korean trades.
Out of 11 regulations chosen by KITA, a field that needs improvement most urgently is improvement in systems for supporting startups. Out of all improvements, KITA wants visa system that makes employment and foundation by foreigners in high-tech industries difficult to be improved politically.
“We want employment rate of foreigners to go up to 80% and have foreigners to receive visas if they have at least Bachelor’s degrees in IT or relevant fields even if they do not have master’s degrees.” said a representative for KITA.
4 regulations out of 11 regulations were regarding their suggestions on blockchain because South Korean Government’s systems are inadequate to actively respond to environmental changes that have quickly changed around trade industries recently.
KITA included enactment of Blockchain Industry Development Fundamental Act, improvement in regulations for utilization of blockchain within financial fields, improvement in regulations related to protection of personal information for utilization of blockchain, and certificate superior status system for development of electronic certification industry.
“Preemptive discussions through legalization are necessary since blockchain can cause changes amongst entire industries.” said a representative for KITA.
While it is expected that businesses that are related to blockchain will begin to appear one after the other, South Korean Government has yet to prepare any detailed plans for promoting blockchain industry and fundamental laws that will regulate such plans. Supplementation of regulations such as obligated termination of electronic financial transaction records according to Electronic Financial Transaction Act is necessary to apply blockchain-related technologies to financial fields. KITA points out that various problems such as permanent preservation of blockchain information and characteristics of distributed ledgers that collide with current laws need to be resolved urgently.
“To promote talented people from startups and to attract foreign capitals, South Korean Government needs to examine support systems of foreign government and put in efforts to adjust its systems to their systems.”
Staff Reporter Ryu, Geunil |

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