The Korean Customs Service (KCS) will be developing a blockchain-based customs service in order to streamline the e-commerce business in the country. The KCS will be teaming up with Malltail, with whom they have just signed a memorandum of understanding (MoU), to simplify and speed up customs operations.
Malltail is the most-used parcel forwarding service in Korea, and will hand over technical development to Korea Center, its Korean operator. Initially, the blockchain concept will undergo a testing phase with 50 domestic companies, in order to verify that it does indeed successfully streamline operations. And if it does, KCS have already said that they are willing to roll it out to other services.
And the testing period would appear to be starting soon, as KCS have already signed up several working groups and companies, both in Korea and abroad – in Vietnam and Singapore.
Certificates of Origin
The accuracy and transparency of the service will be vital during the testing phase, as any change to customs must meet the requirements of a Certificate of Origin. This is an international trade document that acts as certification that exported goods are obtained, produced, manufactured or processed solely in a particular country.
The announcement from the KCS is the latest in a growing line of South Korean private and official organizations getting involved with blockchain. And this growing adoption is happening in tandem with reports from South Korean officials, that a more relaxed stance towards crypto is on the way – which will give hope to the mass of users in the famously high-tech South East Asian country.