South Korea’s major companies have started blockchain business based on cryptocurrency abroad. Their exodus offshore is to bypass the current domestic ban on cryptocurrency-based blockchain business.
The South Korean government bans anything linked to cryptocurrency while encouraging blockchain business.
South Korea’s No.1 messenger service Kakao has established its subsidiary Kakao G in Japan. It also founded its blockchain development firm Ground X in Japan. It opened its subsidiary Klaytn in Singapore.
Ground X has opened its blockchain platform Klaytn this week and plans to issue its own cryptocurrency Clay.
South Korea’s largest Internet portal Naver has branched out into cryptocurrency business through its subsidiary Line in Japan. In April last year, Line set in motion its blockchain technology subsidiary Unblock. It also unveiled its blockchain platform Linkchain and its cryptocurrency Link.
Line is to get a license from Japan to open its cryptocurrency BitMax. Line has 80 million subscribers in Japan.
A blockchain developer in Seoul lamented that many companies rushed out of Korea to bypass the government’s tight ban. Their exodus is costly and is creating jobs offshore, not in Korea.
He hopes that the government would change its policy on blockchain and cryptocurrency.
Under the government’s tight ban, major companies have developed half-baked blockchain platforms. KT has been test-running its blockchain platform Giga Chain. Samsung SDS has prepared Nextledger while LG CNS has completed its Monachain blockchain platform.
However, these blockchain platforms are private, with access limited to the participants. They do not have any coins for compensation.
Samsung Electronics has reportedly been test-running its blockchain main net and cryptocurrencies. However, Samsung made it clear that it has tested the platform, and will honor the government’s ban on cryptocurrency-backed blockchain business.
