South Korea’s Koscom to Develop Blockchain-Powered Platform for Unlisted Securities

South Korea’s state-backed financial IT company Koscom will create a blockchain-powered platform for trading unlisted securities.

Introduced by South Korea’s Ministry of Finance and fundamentally backed by the Korea Exchange, Koscom plans to introduce its blockchain-based platform for unlisted securities within the second half of 2019, local newspaper The Chosun Ilbo reported on August 6.

The report said the project six local companies and organizations are partaking within the initiative, including Koscom, KEB Hana Bank, Hana Financial Investment, Daejeon Technopark, Amicus Lex, and a local association of accelerators. KEB Hana Bank and Hana Financial Investment are subsidiaries of Hana Financial Group, one of the biggest bank holding companies in South Korea.

The press release stated that the project aims to assist small- and medium-sized venture firms extend their capabilities in securities trading by offering a secure, cost-efficient, and accessible platform for trading unlisted securities.

The news comes following Koscom’s endorsement to develop services for trading unlisted securities in May, the report underscores.

Recently, Koscom and KEB Hana Bank were reportedly joining another blockchain-enabled project. Alongside tech mammoth Samsung Electronics, Woori Bank, mobile carriers SK Telecom, KT and LG UPlus, the companies combined strengths to introduce a blockchain-based mobile identification framework in 2020.