South Korea’s state-backed financial IT firm Koscom to develop a blockchain-based platform for trading unlisted securities.
South Korea’s state-backed financial IT firm Koscom will develop a blockchain-powered platform for trading unlisted securities.
Koscom to launch blockchain-based unlisted shares trading service in H2 2019
Launched by South Korea’s Ministry of Finance and primarily backed by the Korea Exchange, Koscom plans to launch its blockchain-based platform for unlisted securities in the second half of 2019, local newspaper The Chosun Ilbo reported on Aug. 6.
According to the report, the initiative six local companies and organizations are participating in 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 largest bank holding companies in South Korea.
As said in the press release, the project intends to help small- and medium-sized venture companies expand their capabilities in securities trading by providing a cost-efficient, secure and accessible platform for trading unlisted securities.
The announcement follows Koscom's approval to build services for trading unlisted securities in May 2019, the report notes.
Recently, Koscom and KEB Hana Bank were reported to be participating in another blockchain-enabled initiative. Alongside tech giant Samsung Electronics, Woori Bank, mobile carriers SK Telecom, KT and LG UPlus, the companies combined forces to launch a blockchain-based mobile identification system in 2020.