35 Million Users to Benefit from New Blockchain Mileage System in South Korea

South Korean most valuable blockchain project, ICON has recently closed a partnership agreement with Korea’s telecommunication giant SK to use blockchain technology and virtual currency as an incentive of the ground-breaking mileage system.

SK planet, being a subsidiary of SK which signed a memorandum of Understanding (MoU) with ICON, is a conglomerate known for its reputation in the widest mileage system in South Korea, having nothing less than 35 million customers which amount for over a half of the population of the country.

SK planet is expected to partner with the ICON’s team of experts to make efficient use of the blockchain technology to provide support for the mobile service cum mileage system OK Cashbag. According to reports, this might occur in a few months’ time.

The Grand Blockchain Partnership

A recent report by a media platform in South Korea stated that it has a partnership agreement with OK Cashbag, the mileage system of SK in July. It also claimed the process of developing a blockchain-based system to handle mileage payment and forms of business models. Hani reported;

“OK Cashbag has approved the initiation of OKX Project, a blockchain technology-based project, and is currently in a phase of reviewing various business models and incentivization methods. But, SKPlanet will not engage in any initial coin offering (ICO) or fund raising pertaining to OKX Project.”

Then, SK Planet chose not to reveal information as to how it intends to go about the technicalities of the proposed blockchain project neither was any information from the company in partnership to streamline the introduction of blockchain technology into its existing infrastructure.

In Pursuant of a Long-Term Strategy

The Memorandum of Understand existing between ICON and SK Planet can be described to be in pursuant of SK’s long-term strategy to advance towards digitization especially with the integration of blockchain technology. Though there are speculations from experts, stating that the partnership between one of the largest message App startup in Asia, Line and ICON, has further encouraged SK to take its work more seriously with ICON in order to release its first blockchain invention. J.H. Kim, a council member of the ICON Foundation, stated that:

“Through cooperation with SK Planet, which has OK Cashbag and Syrup services already being widely used by the public, ICON will keep up the hard work to popularize blockchain.”

SK Planet executive JM Park also added, though from the company’s perspective, that the company would work hand in hand with small and medium-sized enterprises in order to commercialize the blockchain network in Asia, He said;

“Blockchain appears to be one of the key technologies that will promote market transformation in existing industry for the medium and long term. SK Planet will work with ICON to derive synergies in various fields so that we can offer differentiated benefits to our customers.”

Cryptocurrency and Blockchain Catches the Fancy of Major Establishment

South Korea has witnessed a significant penetration of blockchain technology into its economy, especially multi-billion company such as LG, Samsung, Sk amongst others showing a keen interest in the blockchain technology. Owing to this knowledge of the inherent potentials of the technology and its integration, South Korea maintains its position as one the three pillars of the fourth industrial revolution featuring fintech such as AI and big data.

Samsung has been using a foundry to manufacture crypto ASIC miners. SK, on the other hand, has been financing major crypto exchange and Kakao has been in support of Upbit which is the country’s largest virtual currency trading platform operated in Dunamu. Threading this line is an unending list of major conglomerate in South Korea involved in one crypto project or the other.

Undoubtedly, the partnership between ICON and SK Planet can be taken to be the first concrete step towards actualizing the project of the conglomerate which is to utilize crypto to compensate the customers of OK Cashbag mileage system.