South Korea Prepares Blockchain Shipping Trial

South Korea blockchain shipping trial

The government of South Korea is launching a blockchain trial that aims to improve the efficiency of marine logistics, in the latest deployment to tackle this use case.

According to an announcement yesterday, the pilot has been launched by the Ministry of Science, ICT and Future Planning working alongside the Ministry of Oceans and Fisheries.

The project will examine ways blockchain could be used to make container shipping more efficient, by leveraging the benefits of distributed ledger technology in exchanging information and facilitating transactions between parties to the shipping process.

The project is scheduled to begin this month, and will run in the port of Busan over the next year. The system will enable parties to shipping agreements to share information in real-time over a blockchain, with the hope of increasing transparency and reducing costs.

The ministries have said that the trial is considered an initial step toward a wider rollout, which if successful would see the system extended to two further ports in the country.

The trial marks the culmination of the marine logistics blockchain program, one of six unveiled by the Korean government earlier this year as part of broader efforts from the government to embrace blockchain tech in public administration.

Attracting a total of $9 million in backing from the government, the remaining programs cover real-estate transactions, customs clearances, e-voting, cross-border document-sharing and the livestock supply chain.

At the time of the announcement of its blockchain projects, the Ministry of Science, ICT and Future Planning described plans for developing blockchain infrastructure in Korea.

“We will establish a road map for developing blockchain technology and plan to secure 90 percent of the technology level by 2022 compared to the world’s top countries.”

In the coming 12 months, the government is planning to double the number of blockchain projects under development, alongside participating in several other nationwide projects led by the private sector.

The South Korean trial marks the latest deployment of blockchain in shipping and logistics, with significant blockchain activity underway in the sector as governments, port authorities and companies explore the benefits of the technology.

The news comes just weeks after the Korean Bar Association called on the government to introduce blockchain regulation, in a bid to support the emerging blockchain sectors and investors.