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KEB Hana Bank, one of the largest commercial banks in South Korea, reached an agreement with the state-backed road operator, Korea Expressway Corporation, to implement a blockchain-based toll payment system on the country’s roads.
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According to D Daily, the project is expected to be launched before the end of the year. The system will connect KEB Hana’s smartphone banking application, Hana One Q, so that drivers can make their toll payments, defer them or even receive toll refunds.
The news states that both parties involved in the agreement reached to implement this blockchain solution aim to eliminate cash or credit card payments, in part due to the COVID-19 pandemic that encourages them to offer contactless payment solutions.
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Korea Expressway Corporation and KEB Hana Bank want to use blockchain to share data to strengthen synergies along with the payment system project.
Strengthening the adoption of contactless payments
Kwang-Ho Lee, head of the sales division of Korea Expressway Corporation, commented on this announcement:
„We will continue to expand personalized, non-contact services to the public through the application of blockchain technology, which is part of the Korean version of the new digital deal policy to lead the global economy after the coronavirus.
The Ministry of Science and ICT and the Korea Internet and Security Agency approved the agreement. KEB Hana also received approval for its mobile electronic verification blockchain program from the same agencies last year.
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Recently, the South Korean government revealed its intention to invest more than USD 48.2 billion in Blockchain and other Industry 4.0 technologies by 2025. The nation’s goal is to promote the digitization of all industries in the coming post-pandemic era.
Andong, a city in South Korea’s Gyeongbuk Province, announced on July 7 that it had been granted a permit to operate a free trade zone for industrial hemp.