South Korea is well known as a tech-savvy nation. This is not a surprise because the country is home to a lot of tech giants like Samsung, Hyundai, and KIA. South Korea's government policies always encouraged technological breakthroughs and helped Korean people to gain an upper hand at the dawn of new technological breakthroughs. One of these breakthroughs is happening right now. Blockchain technology is starting to change the way we understand and organize financial systems, healthcare, energy, and a lot of other fields. South Korea is once again on the top of its games as the government officials announced that the country will invest $230 Million in blockchain technology development.
Blockchain Technology Development Strategy
This news was revealed by South Korean Ministry of Science on June 21st. Blockchain Technology Development Strategy is the name of the program and its goal is to help the development and advance of blockchain technology and related blockchain-based projects. Korean government officials are hoping that the plan will nurture 100 companies and over 10,000 industry professionals.
The overall goal of the company is that South Korea gain a competitive edge in the blockchain technology market. In order to achieve this, Korean officials will streamline investments in a few different directions.
One of the plans includes nurturing six pilot blockchain projects in Korea. These projects are spread across a vast array of fields which just proves the immense power of the technology. Six projects will focus on online voting, easy real estate, electronic document distributions between countries, marine logistics, management of livestock records and personal customs clearance.
The new strategy will also support the development of Blockchain as a Service (BaaS). There will be around 10 BaaS purchase vouchers provided by the government which will guarantee income to small and medium-sized businesses on a yearly basis.
The legislative area was not left untouched by this new strategy. The goal of the strategy is to clear existing differences between smart contracts based on blockchain technology and conventional legal contracts. Developers of blockchain technology might also get certain tax benefits.
With this new strategy, South Korea might become a blockchain and crypto haven, just like Korea's neighbor Japan, which TheTokener already wrote about. Pro-blockchain stance such as this one shows the real technological maturity of the government officials. It looks like they are going to seize the opportunity and make South Korea a leader in the blockchain market.
There are different views on how countries should deal with transformative technology. The main question that arises is: Should countries interact with the market by backing up certain technology? There is a strong view that considers the free market as the highest economic value and any government interaction with it might be a problem. Nonetheless, examples of South Korea and Japan and their industrial development show that careful government strategies could produce huge benefits for the country and its people. These strategies are put to the test once again in South Korea as blockchain gets significant government support.
What do you think about this strategy? Do you think governments should support certain technologies?