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South Korea is loosening the knot on blockchain, as the country plans to create a free trade zone for industrial hemp, using the technology as a monitoring resource.
The government of South Korea is considering a local hemp regulatory-free trade zone and is looking to manage the production of hemp by employing blockchain technology.
According to a report by Newspim on Tuesday (July 7, 2020), the Andong region in the Gyeongbuk Province became a ‘Special Industrial Hemp Free Zone.’ Governor Lee Chul-woo announced during a press conference held on July 6.
Before the designation of a special hemp-free zone, the hemp industry only made room for the growth of seeds and textiles. However, creating a free hemp zone is seen as a significant development, as it could boost the region’s bio industry.
Furthermore, the South Korea government is looking to monitor the hemp production system by employing blockchain technology for safety and transparency. However, the blockchain-based system will take off following the completion of the industrial hemp regulatory free zone in the city of Gyeongsan City.
Commenting on the latest development, Governor Lee said:
“This special regulatory zone has a special meaning different from that of the existing special zone in that it seeks a rational industrialization plan for narcotic drugs, hemp. We will grow more so that the company can write a new history overflowing.”
South Korea’s blockchain space suffered a decline for a few years owing to the government’s stringent regulatory policies.
Back in 2019, a group of bi-partisan South Korean lawmakers called on the government to ease its stiff policies, with opposition lawmakers stating that the nascent tech was an essential element in the fourth industrial revolution.
However, recent developments in the blockchain sector show that the government is willing to revive its digital economy. In May 2020, there were reports that South Korea’s Ministry of Science and Technology was looking to invest about $400 million in blockchain research and development (R&D).
South Korea’s planned project looks to match China’s blockchain progress, with the latter currently at the forefront of blockchain adoption and innovation. In 2019, China’s President, Xi Jinping, called for more adoption and integration of the technology.
As reported by CryptoPotato in March, China announced plans to launch a Blockchain-based service network (BSN) in April 2020. Also, the Chinese government formed a national blockchain committee comprising tech giants such as Huawei Technologies, Baidu, JD, and Tencent.
Article produced by Anthonia Isichei
