BUSINESS

Blockchain to be used for logistics in Korea

By Shin Ji-hye
  • Published : May 31, 2017 - 14:46
  • Updated : May 31, 2017 - 17:47
Blockchain technology will be used in shipping logistics for the first time in Korea.

Samsung SDS said Wednesday it had launched a blockchain consortium for shipping logistics in partnership with local logistics companies, the government and state-run research centers. The consortium’s members include the Korea Customs Service, Ministry of Oceans and Fisheries, Hyundai Merchant Marine, IBM Korea and Ktnet. 
Participants of a blockchain consortium for shipping logistics pose for photographs at the Samsung SDS campus in Pangyo on Wednesday. (Samsung SDS)

Blockchain is a kind of data structure dispersed across a network of computers, allowing all interested parties to share and check information. When this technology is applied to logistics, it can manage the history of manufacturing, processing, storage and transportation of goods in a more transparent way, making it impossible to manipulate origins, change the distribution period and carry out false advertising. The location of cargo can also be shared in real time.

Those in the consortium agreed to apply blockchain technology to logistics as part of a pilot project. They plan to expand this across their logistics process for all exports and imports by the end of this year. They also agreed to cooperate and research on technical and legal issues for the technology.

“When this pilot project is established successfully, this will simplify customs clearance of companies and save logistics costs,” said Korea Customs Service’s spokesperson at a seminar for the agreement.

“Samsung SDS will provide blockchain technology consulting for consortium members and related organizations. We will make efforts to enable this consortium to help develop the nation’s logistics industry,” said Kim Hyung-tae, the chief of Samsung SDS’ smart logistics business division.

By Shin Ji-hye (shinjh@heraldcorp.com)

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