Participants at a forum organized by the Korea Blockchain Association in Seoul on December 3, 2023, called for the South Korean government to adopt more proactive measures to stimulate the growth of blockchain technologies. The forum highlighted the need for a regulatory shift in the country to enhance innovation in this burgeoning sector.
Moon Young-bae, Vice Chairman of the association, criticized the current positive regulation model in South Korea, which requires explicit permission before new business activities can commence. He contrasted this with the negative regulation frameworks prevalent in the United States and other advanced economies, where business activities are generally permitted unless specifically prohibited.
“The Seoul administration has attempted to heavily regulate the blockchain industry related to coins or tokens. On the flip side of the coin, however, there is extraordinary technology at work called blockchain,” Moon stated. This technology serves as a decentralized, distributed digital ledger designed to securely record transactions across multiple computers in a transparent, tamper-resistant, and verifiable manner.
Moon emphasized the potential advantages of blockchain, urging for greater efforts to advance this technology. “For example, Korea needs to promote the creation of its own main network to support real-world blockchain operations,” he suggested. He further pointed out that blockchain could play a significant role in enhancing the security and reliability of artificial intelligence applications.
Drawing a parallel to historical challenges, he said, “In the early 20th century, there were lots of car accidents, which hindered the widespread adoption of automobiles. Traffic lights played a crucial role in increasing automobile use by improving safety.” He concluded that “by ensuring the trustworthiness of AI-related data and solutions, blockchain can strengthen AI in a similar way.”
Echoing Moon’s sentiments, Lee Sang-yoon, CEO of Bloom Technology, noted that his company has developed its own main network, Locus Chain, and is a member of the association. Lee pointed to examples of countries such as the United Arab Emirates and Switzerland, which have significantly deregulated their blockchain industries. He added that the recent inauguration of President Donald Trump in the United States indicates a similar trend.
“The advent of the decentralized Internet era is inevitable,” Lee asserted. “It will help address many challenges of people down the road.”
The call for a more innovation-friendly regulatory environment comes as many nations are exploring the potential of blockchain technology. Advocates in South Korea express hope that increased government support will unlock new opportunities in this transformative field.
