The Korea Information Society Development Institute (KISDI) held “The Fourth Industrial Revolution and Blockchain” conference at Grace Hall A, 6th Flr., L Tower in Seoul on February 28.

The purpose of the conference was to form policy consensus on the main programs to promote new industries based on the blockchain, which has emerged as the key technology for the Fourth Industrial Revolution, and discuss policies and detailed planning directions for institutional issues.

The conference included keynote speech and presentations as well as a comprehensive discussion on ① Understanding and application of blockchain technology, ② Policy issues and challenges of promoting new industries based on the blockchain, and ③ Regulatory issues and policy direction related to the blockchain.

Professor Kim Seung-ju of Korea University gave a keynote speech titled “Understanding and application of blockchain technology” to explain the operating principle of blockchains including Bitcoin and Ethereum and warned against "blockchain to solve everything,” which has led to commercial exaggeration. He pointed out the current technological limitations of blockchain, i.e., “decentralization,” “scalability,” “security,” and “anonymity and privacy protection,” and presented case studies to resolve them. Moreover, Professor Kim introduced various research cases that seek to utilize the blockchain as a fundamental technology for constructing an extended ecosystem beyond being the base technology of cryptocurrency only.

Kim Gyeong Hun of KISDI presented on “Policy issues and challenges of promoting new industries based on the blockchain” to review the changes in the industrial structure caused by the development of the blockchain and identify the key policy issues to respond to these changes proactively. He compared the blockchain technology level and government R&D investment as well as the key policy cases that were being implemented or to be implemented at home and abroad and presented the policy implications for the promotion of new industries based on the blockchain in Korea.

Ahn Chan-shik, a lawyer from the law firm HMP Law, presented on “Regulatory issues and policy direction related to the blockchain” to review the regulatory status related to the blockchain-based virtual currency trade, which has recently emerged as the biggest issue. After describing the overall regulatory situation for virtual currency, Mr. Ahn reviewed various regulatory issues related to virtual currency. They included the regulation of virtual currency ICO representing the virtual currency issuance market, regulation of virtual currency exchange representing the distribution market, problem of protecting investors (users), taxation of virtual currency transactions, institutionalization of virtual currency trade through legislation, and regulation and policy direction for promoting the blockchain technology.

In the ensuing discussion session moderated by Professor Kang Im-ho of Hanyang University, the experts explored the directions for key policies and strategic responses for the promotion of new industries based on the blockchain and institutional issues. The participating experts included Park Jong-dae of ETRI, Seo Mun-kyu of Coinplug, Weon Jong-hyeon of the National Assembly Research Service, Lee Jae-hyeong of MSIT, Professor Jeong Yu-shin of Seogang University, and Choi Gong-pil of the Korea Institute of Finance.

Inquiry: Lee Shi-jig, Researcher at ICT Strategy Research (043-531-4357)