A South Korean bank has agreed to work with Korea Expressway Corporation towards the introduction of services based on blockchain technology. Specifically, the business agreement is to introduce toll payment systems based on blockchain across the nation’s highways.
A report by the D Daily noted that the expected date for launching the project is before the end of 2020. The service will allow non-payment and refund of toll fees through the entry of vehicle number.
Through the system, the bank’s banking app known as Hanawon Q will be connected for motorists’ arrangement of their toll payments. Hence, motorists will be able to defer payments, or even receive toll fee refunds.
According to the report, the aim of the agreement to implement the blockchain solution is the removal of the cash-based or credit card payments, partly because of the COVID-19 pandemic that motivates the provision of contactless solutions.
Likewise, both firms plan to utilize blockchain in sharing data for the empowerment of synergies together with the payment system project. They will be able to share service target information, as well as send and receive processing results.
The bank has shown interest in the adoption of blockchain technology as it was part of the Blockchain-based Mutual Trust Toll Settlement Demonstration Project hosted by the Ministry of Science and ICT and the Korea Internet and Security Agency.
Similarly, Hana Bank was part of the government’s blockchain public/private pilot project for two consecutive years after the 2019 blockchain-based mobile electronic verification project. In 2020, the bank became a participant in South Korea’s policy formation towards the enhancement of blockchain technology and the country’s version of the Digital New Deal.
The new business agreement between the bank and the Korea Expressway Corporation has been approved by the Ministry of Science and ICT and the Korea Internet and Security Agency.
In recent times, the government revealed its plan of investing more than $48.2 billion in blockchain as well as other Industry 4.0 technologies by 2025.