Today, Korean media outlets
reported that Shinhan Bank has partnered with the Small Business Market Promotion Corporation (or
SEMAS) to build a loan management platform based on blockchain. The platform will streamline verification for SMEs applying for institutionally subsidized loans.
Korea’s ‘policy loans’ are aimed at small businesses to provide them with lower interest rates and a more manageable repayment plan. Government or state-owned organizations often support them, and SEMAS
announced its backing for them last month. However, these loans require a longer and more regulated application process, which can discourage SMEs.
Shinhan and SEMAS plan to use blockchain to simplify application. With immutably and transparently stored data, some documents can be verified digitally. It also allows for more efficient cross-checking and dispute resolution. This, the firms hope, will cut the number of visits to corporations and banks by half.
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