It is the startups, not the government, that seek to design the Korean blockchain industry. Leaders of startups and a dozen lawmakers have joined hands this week to enact a bill to promote the blockchain industry. But it may take time before the bill becomes a law as the government is still lukewarm. In addition, lawmakers have yet to form a consensus to enact the bill.

On Sept. 20, 100 blockchain producers and a dozen lawmakers have formed a consultative group to push for the legislation.

According to Newpim,  Park Hoon-hee, CEO of blockchain consulting firm Unicon Factory, said the participants shared the view that consistent government policy and a clear law would foster the emerging blockchain industry. “Sound development of the blockchain industry would create more jobs, energize the economy for another takeoff and sharpen Korea’s global competitiveness,” he noted.

Park added that the consultative group also includes blockchain producers overseas. “What is encouraging is the fact that the group has opened a dialogue channel between the private sector and the National Assembly,” he said.  “The group wants the enactment of the bill on the promotion of the blockchain industry.” “The proposed legislation would set a guideline on investors on cryptocurrencies, initial coin offering (ICO),  virtual currency exchanges and consulting services,” he said.

The group will propose policies to create a healthy blockchain ecosystem. It will also study foreign policies and legislation to check whether they could apply to Korea. It will invite international experts to get their advice.

About ten lawmakers of both the ruling and opposition parties, including the former leader of the Bareunmirae Party Park Joo-sun; floor leader Kim Kwan-young and Jung Sung-ho, the National Assembly chairman of the Finance and Economy Committee and  lawmaker from the ruling Democratic Party.

The participants include leaders of bitcoin brokerage and service provider Coinplug, blockchain designer Iconloop, Glosfer, MediBlock, KT, Samsung SDS, Ground X, Matrix2b, Wavus, and NDS.

Last week, Vice Minister Min Won-ki of the Ministry of Science and ICT met with leaders of blockchain startups. In the meeting, these leaders of the startups called on the government to create a level playing field between domestic and foreign blockchain solution makers, to increase government projects for blockchain technology, to build a cloud-based blockchain technology development, and to hike budget for blockchain research and development.

The Korea Blockchain Industry Promotion Association and the Korea Open Blockchain Industry Association will increase their social and public projects. They said tax incentives would hike their investment in public services.

Major countries, including France and Japan, have been moving to enact a bill on the blockchain technology. The South Korean government has adopted a two-track approach on the blockchain. It is tough on cryptocurrency and ICO, but proactive in linking blockchain to manufacturing. The South Korean government has initiated pilot projects aimed at using blockchain technology on customs clearance, drones,  history of cattle and delivery services.

President Moon Jae-in has launched a commission to remove regulations to introduce core technologies for the Fourth Industrial Revolution. However, the commission has yet to set cryptocurrency and blockchain as its agenda. Seoul Mayor Park Won-soon and   Jeju Province Governor Won Hee-ryong have been active promoters of the blockchain industry.

Vice Science and ICT Minister Min Won-ki, second from left, talks with leaders of blockchain startups in a meeting on Sept. 15 in the Bundang Technology Valley.                                                                                                                                                                                                                                                                                               Photo courtesy of Newspim