South Korea has been one of the foremost examples of the adoption of blockchain technology. The nation has been actively engaging in its development, and this can be viewed from efforts that vary from tax relief to blockchain education. 

Moreover, it has taken steps to execute blockchain technology into the various public sector that involves livestock supply chain, customs clearance, online voting, e-documentation, and real estate transactions, to mention a few. 

The Latest Initiative

The government has, however, taken another step to assure the progressive growth of blockchain technology. In a press release, it has declared the release of its project named ‘Blockchain Technology Validation Support in 2020’. Following this initiative, a grant of 3.9 billion won ($3.09 million) will be granted to blockchain startups. 

The government has elected a group of nine external and internal projects that will be given 450 million won. The grant will be conducted under the Ministry of Science and ICT and the Ministry of Information and Communication Industry Promotion. 

The target group for this grant mainly involves small to medium-sized companies, with above 75% of the total amount allotted to them. Moreover, the application period is granted until November 30th. The criteria for assessing the companies to obtain funds include several requirements. This consists of a demonstration of the utility of the project, business goals, specificity of technological evaluation, and its influence on jobs. 

ICT has fully supported and has been at the vanguard in taking actions that help modern technological innovations. The Ministry stated, “We plan to support domestic specialized companies to rapidly grow and activate the ecosystem in the early stage of the blockchain market.”

Past Efforts of the South Korean Government

This is not the first time that the government has allotted resources. In a financing project last year, the government picked 11 companies. These companies, in turn, recorded five patent applications, 3 MOUs, nine copyright registrations, and two investment promotions. 

Another initiative by the government involves relief in tax troubles for blockchain startups. It allows small organizations to work in blockchain to allege 30-40% of tax deductions. To put things into the prospect, companies from diverse backgrounds can only decrease up to 15-25%. 

In 2018, the Ministry of Science and Technology also took the initiative towards training and education in the blockchain sphere. The government-funded $90 million for this project, wherein it elected 42 candidates for training courses and tuitions. 

The Korean government has also proposed to launch blockchain pilot projects in various public sectors. For example,- the ICT Ministry is preparing to use a supply chain blockchain solution for tracking livestock from breeding to sales. 

Other than these, several other projects involve traceability of beef. The focus on utilizing blockchain, supply chain, and logistics, a blockchain-based virtual power plant, is obtaining traction. More significantly, the government has actively been participating and promoting solutions for this technology.