“Incheon Song-do is the center of South Koreas’ financial industry while Busan and Osan are clusters of distribution and medical information respectively. We need to consider a plan of forming ‘blockchain zones’ by tying infrastructures from each region to blockchain. It is unfortunate that South Korea still has regulations that hold back our technology development.”
Chairman Lin Ho of Blockchain Society (Professor of Korea University’s Computer Engineering Department) emphasized a need for voluntary restraints and designation of blockchain zones through an interview with The Electronic Times before Korea University’s Blockchain Research Institute is set to open its doors on the 25th.
“It is time to draw a big picture of blockchain from a national point of view.” said Chairman Lin. “We need to figure out how we are going to establish regulations and promotions and to establish detailed definitions.” Although protection of investors and prevention of speculations are also important, he pointed out that current South Korea’s regulations on blockchain do not meet technology developments.
He elaborated by saying that speed of South Korean Government’s regulations remains at 30km while technologies related to blockchain are moving at a speed of 100km. He said that South Korea rather needs voluntary restraints at a speed of 70km.
He is arguing that South Korean Government needs to establish blockchain zones that are tied to areas that have advanced infrastructures rather than just looking at negative elements such as cryptocurrency speculation.
“We need to draw a picture of tying blockchain industry to infrastructures from major regions in South Korea.” said Chairman Lin. He also said that Center for Creative Economy & Innovation, which plays a pipeline role of FinTech industry, needs to be upgraded to a blockchain foundation center and have it perform various roles such as creating personalized jobs.

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<Chairman Lin Ho of Blockchain Society>

“Industries must unite and react to sensitive problems such as protection of investors first and they must pave a way to measures that can actively respond to reverse ICO (Initial Coin Offering) and others.” said Chairman Lin.
He also explained that blockchain is an alternative to an issue involving Samsung Securities and ghost stocks that has recently caused controversies.
“When stocks are replaced with blockchain coins, it will be easier to transfer ownership.” said Chairman Lin.
However, a problem arises when there are discussions about how to calculate and divide values of various coins.
“Blockchain Research Institute is planning to create a separate evaluation committee and set up evaluation guidelines to confirm whether cryptocurrencies are implemented through proper technologies and whether business models are correct.” said Chairman Lin. “It is also going to analyze whether information from white papers of coins are correct by establishing detailed standards and contribute to solving various problems that arise from blind spots of coins.”
“If these current regulations continue, many of our intellectual property rights, contents, and enormous amount of money can go over to foreign companies as significant amount of information from South Korean companies is with Google, Facebook and others.” said Chairman Lin.
He emphasized that while $3.71 billion (4 trillion KRW) of money is gathering towards blockchain market globally just during the first quarter of this year, South Korean Government is continuing to block foreign capitals and it cannot prevent South Korean cryptocurrency companies and their capitals from leaving the country.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com