KEB Hana Bank, one of South Korea’s largest commercial banks, has reached an agreement with state-subsidized road operator Korea Expressway Corporation to implement a blockchain-based toll system on the country’s highways.
According to D Daily, the project is expected to be launched by the end of the year. The system will connect KEB Hana’s mobile banking app, Hana One Q, to motorists so that they can pay commissions, delay them or even demand a refund.
The report states that both parties to the agreement have decided to implement a blockchain solution aimed at eliminating cash or credit card payments, in part due to the COVID-19 pandemic that led them to offer contactless solutions.
Korea Expressway Corporation and KEB Hana Bank want to use blockchain for data exchange to improve interaction with the payment system project.
Promote the adoption of contactless payments
Kwang Hu Lee, Sales Manager for Korea Expressway Corporation, commented on the announcement:
“We will continue to expand indirect (non-contact) specialized services to the public through the implementation of blockchain technology, which is part of the Korean version of the Digital New Deal policy aimed at leading the global economy after coronavirus.”
The agreement was approved by the Ministry of Science, Information and Communication Technology and the Korea Internet and Security Agency. KEB Hana also received approval for a mobile electronic blockchain verification program from the same agencies last year.
The South Korean government recently announced its intention to invest over $ 48.2 billion in blockchain and other Industry 4.0 technologies by 2025. The country’s goal is to facilitate the digitization of all industries in the next post-pandemic period.
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