South Korea's National Pension Service Considers Blockchain for $890B Fund Transactions

Key Points:

• South Korea’s National Pension Service (NPS) is looking into blockchain technology to improve transparency and security in fund transactions.

• The NPS aims to safeguard fund records from tampering and enhance the management of retirement security.

• The service will initiate a preliminary disclosure process followed by a research study to evaluate the feasibility of incorporating blockchain into its accounting system.

South Korea’s National Pension Service (NPS), overseeing 1,224 trillion won ($836 billion) in assets, is considering the use of blockchain technology in its fund transaction systems.

The NPS is evaluating a transition to blockchain to enhance transparency and security in managing its deposits, withdrawals, and investments, as reported by Seoul Economic Daily, citing industry sources.

The NPS intends to start a preliminary disclosure process, inviting blockchain experts and companies to provide input before officially moving forward with the project, according to the news outlet.

This feedback phase, a common step for large public projects in Korea, will guide a research study on the feasibility of integrating blockchain into the pension fund’s accounting system. The NPS is focusing on how blockchain’s shared ledger can safeguard fund records from tampering, which is vital for ensuring the retirement security of millions.

The NPS has previously utilized blockchain to monitor overseas pension recipients. While it isn't planning to invest directly in Bitcoin (BTC) or other cryptocurrencies, it has indirect exposure to the sector through investments in companies like Strategy and Coinbase.

This move follows closely on the heels of South Korea's 7-Eleven stores beginning to accept the Bank of Korea's central bank digital currency as part of a significant trial.