South Korean KB Kookmin Bank Adopts Blockchain Technology

Major South Korean KB Kookmin Bank is planning to integrate blockchain technology into its internal processes.

On Oct 7. local news outlet Korea JoongAng Daily reported the adoption of decentralised ledger technology by the bank.

Blockchain in Financial Sector

KB Kookmin stated that adopting blockchain could provide many benefits to the financial sector such as issuing of digital tokens, funding, custodial services, and trading.

As for the bank itself, it intends to deploy decentralized ledger technology to fight money laundering, improve verification services, custodial services and token offerings.

Lee Woo-yeol, chief information officer at KB Kookmin, said that the bank should take a proactive approach toward blockchain tech, stating:

“We see blockchain as a big wave that will disrupt finance in the future. We need to be ready for the moment when different types of assets turn into tokens, although we don’t know when that will be.”

KB Kookmin signs MoU with Atomrigs Lab

In June, KB Kookmin signed a memorandum of understanding with technology firm Atomrigs Lab.

It wants to jointly develop digital asset management services using Atomrigs Lab’s technology while using internal control infrastructure and data protection technologies of KB KB Kookmin Bank’s.

Regulatory Scrutiny from FSS

Korea’s Financial Supervisory Service (FSS) previously criticized KB Kookmin and Nonghyup Bank’s management.

The FSS stated that there was a problem ‘with the so-called “suspicious transaction extraction standard of Kookmin Bank’s virtual currency handling business.”

Source: |Image: Shutterstock

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