Woori, South Korea’s financial giant to develop Blockchain-based financial services with Kakao subsidiary

Woori Financial Group, South Korea’s financial services leader has partnered with Ground X to develop blockchain-based financial services. Ground X is a subsidiary of Kakao that was established last year to specialize in enabling mainstream adoption of blockchain technology in Korea. According to the press statement released by the Financial Group’s Chairman Son Tae-Seung at the company’s headquarters in Central Seoul yesterday,  the two companies signed the said agreement on Tuesday, August, 20th.

Under the agreement, the two companies are set to work together to develop financial services that are anchored on blockchain technology. The agreement reportedly also provides for models that will enhance sustainable blockchain research collaborations between the two.

Even though the details of the agreement in regards to the services to be developed are not yet out in the public domain, a blockchain-based credit card payment system is expected to be one of the services. A part of the press release read: 

 “In particular, Woori Card plans to discover new business models, such as payment and settlement services using blockchain, through technical support from GroundX,” 

Woori card currently is a credit card focused subsidiary of the Woori Financial Group.

More blockchain-based partnerships with Woori

On the other hand, Woori has entered into different collaborations with other partners on blockchain-related projetcs. Reportedly, Woori together with KEB Hana Bank, Samsung Electronics, and Koscom are set to jointly develop a blockchain-based platform to be used for personal identification.

Further, Kakao the parent company of Ground X, which is a messaging-to-mobility tech company and Korea’s 36th largest conglomerate with over $8.8 billion in assets, has been partnering with other major companies in South Korea to further their blockchain technology agenda. It has previously partnered with Korea’s third-largest chaebol,  the SK Group, to develop a blockchain-based donation platform. Last month, it’s subsidiary Ground X, together with two financial institutions, which are; Shinhan Bank and Hexlant developed a private key financial management system.

With these major independent developments and partnerships by the two companies, this recent agreement is something to watch out for. The partnership is set to revolutionize the financial sector in South Korea given that both companies are leaders in their areas of operation in the country.