Samsung SDS, along with Korean government and state-run research centers and logistic companies, is launching a consortium to bring blockchain technology to the country’s shipping industry.
The announcement follows Samsung SDS’ recent membership with the Enterprise Ethereum Alliance (EEA) that connects Fortune 500 enterprises, startups academics and technology vendors with Ethereum subject matter experts.
According to Korea Herald, the consortium members include the Korea Customs Service, Ministry of Oceans and Fisheries, Hyundai Merchant Marine, IBM Korea, and Ktnet. This will mark the first time that blockchain technology would be in shipping logistics in Korea.
In the logistics sector, blockchain could transform various processes including manufacturing, processing, storage, and transportation of goods. It has the potential to make the processes more transparent by making it impossible to manipulate origins, alter distribution period, or carry out fake advertisements. In addition, it could also facilitate real-time tracking of cargo.
“When this pilot project is established successfully, this will simplify customs clearance of companies and save logistics costs,” said Korea Customs Service’s spokesperson at a seminar for the agreement.
As part of a pilot project, the consortium members have agreed to apply the technology to logistics. They intend to expand the application across their logistics process for all exports and imports by the end of 2017. The consortium members will also collaborate on technical and legal issues surrounding blockchain technology.
“Samsung SDS will provide blockchain technology consulting for consortium members and related organizations. We will make efforts to enable this consortium to help develop the nation’s logistics industry,” said Kim Hyung-tae, the chief of Samsung SDS’ smart logistics business division.
