Seongnam, a major satellite city in South Korea, is preparing to expand its existing blockchain-powered payment program by issuing new digital gift certificates.
It has been reported by Kyunghyang Shinmun that the city’s blockchain infrastructure will rely on a mobile app named “Chak app,” as this app will be built by the Korea Minting and Security Printing Corporation (KOMSCO).
However, Seongnam’s project hopes to make it easier for elderly and middle-aged residents to utilize the city’s existing blockchain technology. They also hope to strengthen the use of contactless payments during the COVID-19 pandemic.
Seongnam is well known for its Pangyo Tech Valley, an IT complex that serves as the headquarters for many of the country’s tech giants, such as Kakao Group, SK Telecom, AhnLabs, and Nexon, among others.
Local media outlets said that three digital gift certificate types, such as representing cash, check cards, and mobile cards can be used at 45,000 card merchant locations across the city.
Previously, the operator behind Seongnam’s project praised the record-breaking profits brought in by its stablecoin and blockchain projects in 2020.
Thus, on August 9, KEB Hana Bank reached an agreement with the state-backed highway operator, the Korea Expressway Corporation, to bring blockchain-based toll payments to the nation’s highways.