BUSINESS

LG and Kakao join hands to promote blockchain

By Lim Jeong-yeo
  • Published : Nov 21, 2019 - 16:19
  • Updated : Nov 21, 2019 - 16:19

LG’s IT solutions affiliate LG CNS and Kakao’s blockchain subsidiary Ground X joined hands with a view to expanding the use of blockchain and applying it to diverse business areas, the firms said Thursday.

The two companies agreed to a strategic partnership to build mutually compatible infrastructure. Ha Tae-Seok, the leader of LG CNS’ future strategic business division, and Kakao Ground X CEO Han Jae-seon attended a signing ceremony at the LG CNS headquarters within LG Science Park in Magok, Seoul. 


A Kakao developer explains the Klaytn blockchain ecosystem at the “if kakao” developers’ conference, in this file photo taken Aug. 30, 2019. (Lim Jeong-yeo/The Korea Herald)


“Currently, there is an active ‘inter-chain’ projects within the industry to connect unique blockchain ecosystems,” said an LG CNS representative. “We will break down the existing boundaries between private and public blockchains through this partnership and combine our strengths for new business opportunities.”

A Ground X representative added, “Our Klaytn’s anchoring technology will solidify LG CNS’ Monachain’s data purity and reliability. Collaborating with Korea’s representative IT service company, LG CNS, will lead to a growth of blockchain ecosystem in the country.”

LG CNS launched Monachain, a private corporate blockchain platform, in May.

Monachain was used to build a local currency payment platform, “Chak,” for the Korea Minting and Security Printing Corporation earlier in the year. This was recognized as the first use of blockchain in the public sector. Chak is now being used in provincial cities Siheung, Seongnam, Gunsan, Yeongju and Jecheon.

As for the private sector, Monachain was first adopted by LG Uplus, the telecommunications arm of LG, which streamlined its insurance payment process for lost or damaged mobile phones in July. Because the blockchain system securely shares Uplus information with KB Insurance, customers do not have to submit additional paperwork.

Ground X launched its public blockchain platform, Klaytn, in June. It provides a developer-friendly environment for blockchain coding and operation, and is actively seeking to popularize the use of blockchain among regular people.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)


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