South Korea’s National Pension Service (NPS), which manages 1,224 trillion won ($836 billion) in assets, plans to examine how blockchain technology could be integrated into its fund transaction systems.
The organization is considering a shift to blockchain to enhance transparency and security in managing its deposits, withdrawals, and investments, according to a report by Seoul Economic Daily, which cited industry sources.
The NPS intends to initiate a preliminary disclosure process, engaging blockchain experts and companies for feedback ahead of formally launching the initiative. This consultative phase, standard for significant public projects in Korea, will guide a research study on the feasibility of incorporating blockchain into the pension fund’s accounting system. The NPS is particularly focused on how blockchain’s shared ledger technology can prevent tampering with fund records, an essential measure to secure the retirement savings of millions of individuals.
Notably, the NPS has previously utilized blockchain to track overseas pension recipients. While there are no plans to invest directly in Bitcoin (BTC) or other cryptocurrencies, the fund has incidental exposure to the digital asset sector through investments in companies such as MicroStrategy and Coinbase.
This initiative comes on the heels of 7-Eleven stores beginning to accept the Bank of Korea’s central bank digital currency as part of a significant trial, indicating a broader acceptance and exploration of blockchain technology in South Korea.
Disclaimer: Information gathered for this article was translated with the use of artificial intelligence.
