Governor Won Hee-ryong has officially proposed that Seoul designate Jeju as a “Blockchain Industrial Zone.” Here’s Mike Laidman to tell us what the zone would be and why the province made the proposal.

Beginning next year, certificates of residency will be issued digitally via smartphone.

[slug]
Blockchain-based e-certificates coming in 2019

Seoul is planning to issue the blockchain-based e-certificates on a trial basis beginning from 2019.

When the e-certificate platform is in place, it will cut the cost of the roughly 37,000 paper certificates distributed annually.

[slug]
Official ID certificate system to be replaced

Until now, official ID certificates have been considered an obstacle to e-commerce, and will therefore be discontinued 18 years after they were first introduced.

The means of certification will be diversified to include not only fingerprints and iris recognition, but blockchain, as well.

Recording
Im Myeong-hwan / Electronics & Telecommunications Research Inst.
Developers are creating new platforms and services for the Internet of Things, social media, e-commerce, and digital content copyrights by adopting blockchain technology.
[녹취 임명환 / 한국전자통신연구원 책임연구원 ]
"IOT를 포함해 SNS, 전자상거래, 콘텐츠저작권 이런 부분이 급격하게 블록체인 영역에서 새로운 플랫폼이나 서비스로 구현되고 있습니다."

These more convenient certification methods will work with blockchain, which is typically managed by a peer-to-peer network.

The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.

[slug]
Multiple uses for blockchain technology

Blockchain technology can be applied for projects and contracts in the areas of security, distribution, employment and other jobs in which multiple people are involved.

However, the technology hasn’t advanced much yet due to the emerging side effects of cryptocurrency using blockchain technology and regulatory obstacles.

[slug]
Jeju proposes designation as blockchain, cryptocurrency zone

Governor Won Heeryong officially proposed to Seoul the idea of designating Jeju Island as a blockchain and cryptocurrency industrial zone.

If the designation happens, current regulations inhibiting blockchain technology will be eased.

[slug]
Province to support establishment of crypto exchange market

In particular, the island is planning to allow the establishment of a cryptocurrency exchange market and fully support firms investing in blockchain technology.

Phone Interview
Rho Hui-seop / Provincial office of ICT convergence
We believe the cryptocurrency exchange market is the most important facet of the blockchain system. If we can first get an exchange market here, that will attract other firms and organizations working on blockchain technology. We plan to organize the local ecosystem in that order as quickly as we can.
[전화인터뷰 노희섭 제주도 ICT융합담당관 ]
"블록체인 생태계 측면에서 가장 중요한 것이 거래소라고 보고 있거든요. 그래서 거래소를 1차적으로 유치하고 그러면 거래소와 관계된 블록체인 기업이나 유관산업들이 빨리 유치가 될 것입니다. 그런 순서로 생태계를 빨리 구성하는 방향으로 진행하려 합니다. "

Specialists say that the island can compete with Switzerland, which itself invites tech firms to increase its tax revenue, if in fact Jeju’s plan is realized.

Recording
Gang Sae-won / Representative, Blocktech Inc.
If Jeju adopts Malta’s system and laws, international cryptocurrency exchange markets and tech firms will come here.
[녹취 강세원 / (주) 블록테크 대표 ]
"제주가 말타에 버금가는 제도와 법안을 마련한다면 세계적인 거래소와 블록체인 기술기업들을 유치하고 산업을 활성화할 수 있다고 믿습니다.

[Reporter] Mike Laidman
[Camera] Kim Seung-cheol

Now, over halfway through 2018, those in the tech industry are waiting for Seoul’s decision on the island’s proposal of a blockchain system - heralded by some as the core of the fourth industrial revolution.

Mike Laidman, KCTV