In March of this year, ETHNews reported that the Korea Customs Service (KCS) had revealed plans to use blockchain technology in order to prevent smuggling and trade finance fraud, as well as to increase communication and transparency through real-time information sharing.
Today, local outlet Chosun reported this plan came one step closer to fruition when the KCS signed a Memorandum of Understating with the Korea Center to develop a blockchain-based platform to improve the process of clearing items through customs.
The Korea Center is no stranger to the challenges of logistics. The company currently runs Malltail, one of the biggest package forwarding services in Korea, and will be responsible for the development and verification of this new blockchain platform.
According to the article, "When blockchain technology becomes fully scaled, the process of clearing goods through customs will be simplified through mutual sharing of information [and the automatic generation of reports] ... It is expected that customs service will become more transparent."
Several companies, such as Matrix Tobi Co. Ltd., Nomad Connection Co. Ltd., and CJ Korea Express Co. Ltd., are participating in the pilot program, which will be operated by the KCS in several Malltail distribution locations in Japan, Germany, and the US.
Kim Kee-rok, CEO of Korea Center, said, "I am very pleased to be selected as a participating company in this pilot project to establish a blockchain e-commerce customs platform ... In the future, [I plan to introduce] a full payment service."
The KCS and Korea Center are the latest organizations that are looking to blockchain technology to improve their efficacy, communication, and overall customer service. In November 2017, ETHNews reported that shipping giant UPS was looking into the advantages of using blockchain technology. Just last week, it was reported that US-based Norfolk Southern had joined with the Blockchain in Transportation Alliance (BiTA) to help define the role blockchain technology will play in the fields of shipping and logistics.
Translations approximated with the help of Google Translate.