KT said on February 14 that it has been selected as the preferred bidder for 'the operator of the local currency platform' in Gimpo, Gyeonggi Province.
KT and Gimpo city signed a contract and plan to introduce their official services sometime in April.
The city has been pushing for the issuance of 11 billion won in local currency annually to revitalize the alley economy by circulating local funds.
To do this, the government reviewed the introduction of regional currencies in the form of mobile and card that can be easily used while minimizing the adverse effects of existing banknotes.
KT has been selected as the preferred bidder by proposing a blockchain platform for payment of mobile and card to successfully settle local currencies in Gimpo.
K-Token, a block chain-based encryption token technology, is applied to the local currency platform that KT proposed to Gimpo.
K-Token has the characteristics of being able to be published freely by setting conditions for use areas, businesses, rights, and duration.
In case of local currency in Gimpo City, payment can only be made at the stores belonging to the Gimpo area, and some stores that are not suitable for the purpose of local currency, such as large retailers and entertainment establishments, will be restricted.
It is possible to spread member stores in a short period of time by providing both CPM (Customer Presented Mode) and MPM (Merchant Presented Mode). KT also provided additional card payment services considering the weak IT groups.
"Our platform cannot be forged or double paid and illegal cash inflows, which are pointed out as a side effect of local currency, can also be blocked," said KT.
KT is planning to expand and apply blockchain regional currency platforms to local governments nationwide, including Hadong, Namhae and Ulsan City.
"We will actively contribute to revitalizing the regional economy by providing solutions that link specialization projects by local governments across the country," said Seo Young-il, director of KT's Block Chain Business Center.
