A South Korean city is expanding its blockchain payments program

South Korea's major satellite city, Seongnam, is preparing to expand its existing blockchain-based payment program by issuing new digital gift certificates.

According to Kyunghyang Shinmun, the city's blockchain infrastructure will be based on a mobile app called Chak. This application will be built by the Korea Minting and Security Printing Corporation, or KOMSCO. The Seongnam project aims to make it easier for the elderly and middle-aged people to use the city's existing technology. They also hope to strengthen the use of contactless payments during the COVID-19 pandemic.

Local media said three types of digital gift vouchers - representing cash, check cards and mobile cards - can be used at 45,000 outlets across the city.

Seongnam is well known for Pangyo Tech Valley - an IT complex that serves as the headquarters of many of the country's tech giants, such as Kakao Group, SK Telecom, AhnLabs, Nexon.

The operator behind the Seongnam project previously boasted record profits achieved in 2020 thanks to its stablecoin and blockchain projects.

KEB Hana Bank, one of South Korea's largest commercial banks, concluded an agreement on August 9 with the state-owned highway operator, Korea Expressway Corporation, on the introduction of highway tolls.