One of South Korea’s largest card issuers launches Blockchain-powered platform to help customers spot counterfeit goods

Shinhan Card, South Korea’s largest credit card company and a global top five credit card issuer, has launched a blockchain-powered digital guarantee service used to certify the authenticity of its products.

South Korean news agency Money Today has reported that the warranty service will first come to BGZT – a Seoul-based startup that operates a second-hand sales platform that Shinhan Card signed a partnership with to expand its strategic alliance on platform businesses about a year ago.

When customers purchase goods from BGZT’s three stores in Seoul, they can scan a QR code on the purchased product and receive a digital warranty. They can then check detailed information about the product on Shinhan’s pLay mobile application, whether or not the product was purchased with Shinhan Card’s credit or debit card.

The service is expected to checkmate the sale of counterfeit goods. The companies say they plan to sell 10,000 products that can be certified with the digital warranty service by the end of 2022.

Shinhan Card says it will expand its service by continuing to sign partnerships with more retailers and manufacturers in the country. A company spokesperson also stated that Shinhan Card will continue to develop more blockchain-supported services for everyday use.

“We will increase the credibility of used products by introducing more secure blockchain technologies and offering better customer experiences. We will continue to develop various blockchain-supported payment services used in daily life by cooperating with more manufacturers and retailers,” the company official said.

Blockchain adoption in South Korea is gaining ground, but still faces regulatory setbacks

The digital guarantee service is not the first blockchain-powered product companies in the Shinhan Bank conglomerate have launched. Back in 2020, Shinhan Card became the first credit card issuer in the world to receive a patent for a blockchain-based payment system after first announcing its plans in 2019.

Similarly, Shinhan Bank launched a blockchain-based KYC solution in partnership with ICONLOOP in 2020 – becoming the first to commercialize decentralized identity (DID) service for the financial sector in Korea.

While Shinhan Bank and other South Korean giants such as Samsung have continued to push blockchain adoption, blockchain technology and the cryptocurrencies it enables have faced significant regulatory backlash in the country.

Cryptocurrencies have gained considerable notoriety in South Korea. According to a Bloomberg report in August, cryptocurrencies were the biggest contributors to illicit currency transactions in the country this year. This has prompted regulators to crack down on the market, while lawmakers are also working on broad legislation to guide the industry.