Korean customs are set to become considerably faster as the country’s custom authority announced the partnership with Samsung to develop a blockchain based customs platform. Allowing items to move considerably faster the authority also noted the potential to crackdown on fraud due to the decentralized nature of blockchain technology.
The South Korean Customs service has officially drawn up a memorandum of understanding to signal the beginning of the partnership. While not a legally binding contract or obligation, the memorandum of understanding has also allowed collaborations with 48 firms signing up including a substantial number of state departments and agencies also signaling interest.
“The successful conduct of the business will help strengthen the leadership of the logistics blockchain, helping to increase the competitiveness of the logistics of the country.”
– Vice President of the Logistics division – Samsung SDS
[Translated from Korean]
Corruption and fraud remain rife in Korea with the customs industry no expectation. With a number of business and individuals able to circumvent current customs tariffs and evade paying duties, the Customs service has announced its intention to use blockchain technology to root out offenders. Considering the number of state agencies and insurance companies also involved in the memorandum of understanding with each proposing to be a node in the final network, the blockchain will become one of the most comprehensive networks in the country.
To conclude, Samsung’s blockchain technology will become the basis for a new customs tracking program for the South Korean government. Currently Samsung SDS use blockchain technology as the basis for the in-house Nexledger platform. Further experimenting with logistics tracking and supply chain integration the firm also uses blockchain technology to enable faster and cheaper international deliveries.