South Korea and Vietnam to share blockchain know-how

December 05, 2022 | 11:25
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Last week, an event on tech cooperation between Vietnam and South Korea saw the participation of nearly 100 attendees, including experts, entrepreneurs, and investors.

On November 28, Vietnam Investment Review co-hosted the event with the Vietnam Blockchain Association (VBA), Korea NFT Content Association (KONCA), and NBN Korean TV. It allowed participants to discuss the legal policy framework for the technology sector in Vietnam and South Korea, while also connecting the Vietnamese business community with global technology organisations and communities.

South Korea and Vietnam to share blockchain know-how
MoUs were signed that will see ramped-up partnerships between Vietnam and South Korea in the blockchain arena, Photo: Dung Minh

Mark Hwang, president of KONCA in Vietnam, shared some insights about the relationship between South Korean technology and entertainment industries. “Technology helps the entertainment industry solve operational and business problems, and the entertainment industry also contributes to the dissemination of technological knowledge to the general audience through music, games, and television,” he said.

Leveraging the influence of the entertainment media, NBN TV was established as the first blockchain news channel in South Korea, specialising in broadcasting blockchain-related content such as interviews with experts, training programmes, and market analyses.

Major companies in the music industry, such as HYBE, the management agency of K-pop superstars BTS, are also flocking to the non-fungible token (NFT) market.

In 2021, HYBE announced that it would cooperate with South Korea’s largest cryptocurrency operator to build products and open an NFT Marketplace. In sports such as baseball, profile cards of famous players or memorable moments in the game are also traded in the form of NFTs.

The same thing has happened to the gaming industry with the expansion of the P2E (play-to-earn) movement. They are contributing to changing game culture by looking at the sector as a content industry.

Before the development of blockchain, the sale of art works was concentrated in the small community, but now there are services like Define Arts or Artnomics for renting artwork. When buying an NFT, the buyer will not directly own the work at home, but can rent it out to restaurants and hotels for business, marking a shift from the collection-focused market to new business models.

Choi Kang Yong, chairman of the NBN News Agency said, “The digital asset market in Vietnam has just begun and has to go through many lessons. Education and knowledge dissemination are essential to overcome market fluctuations.”

A signing ceremony of an MoU between the VBA and KONCA, as well as one between the VBA and NBN Korean TV, took place within the framework of the event. KONCA and NBN are organisations that focus on NFT and exploit entertainment content, regularly organising educational programmes specifically for artists and business education for IT employees or businesses who want to create NFTs.

Through the partnership, the two commit to share these contents with the VBA on the way to building educational programmes.

“In South Korea, the speed of transition from the analogue world to the virtual world took place rapidly after the pandemic, and financial institutions face many difficulties in strictly controlling this. Therefore, the South Korean market is moving into a period of contraction and tightening of the development process,” Yong said, adding that regulations in South Korea are incomplete and still in the process of being reviewed.

Phan Duc Trung, vice president of the VBA, said, “We need to promote learning from other markets to avoid risks. That is the reason the VBA has cooperated with KONCA and NBN to promote education, legal awareness, and NFT application. This way, we can remove knowledge limitations in each individual when approaching this field, as well as the extreme frenzy of deifying blockchain technology under the terms metaverse or NFTs.”

Do Tien Thinh - Deputy director National Innovation Centre

South Korea and Vietnam to share blockchain know-how

Currently, on the national database, one in six databases are about businesses and citizens’ identities. The application of blockchain for managing members in an organisation and building a database are absolutely advisable, but it is necessary to determine the target audience of this system because if the purpose of the use is too simple, it is not necessary to use blockchain.

The essence is that blockchain should be associated with digital transformation, developing new models, and returning data to users. The application of blockchain is a must-do to contribute to the digitisation process, and the implementation of authentication, and electronic identification activities.

Additionally, blockchain is applied in all fields and areas in Vietnam, especially agricultural and industrial productions, to store and analyse information and databases. It does not contain any legal risks. Many businesses and state ministries, as well as agencies in Vietnam, have applied blockchain in governance.

Mark Hwang - Chairman, Korea NFT Content Association Vietnam

South Korea and Vietnam to share blockchain know-how

NFT markets in South Korea are growing very fast. For example, BTS’ management company HYBE launched its own NFT marketplace. But so many other artists and performers are now joining the NFT market in South Korea. It’s starting strongly from entertainment, but now it’s spilling over to other markets and other industries.

Regarding South Korea’s experience in issuing effective NFT policies, it is a difficult area to discuss. South Korea is not yet fixed in terms of regulations and the process is still ongoing. But based on the South Korean experiences, we have to separate cryptocurrency and NFT.

I believe NFTs have potential in the coming time in Vietnam. Potential users are young and can speak languages such as English, Chinese, Korean, and Japanese. Therefore, our market application in Vietnam would have strong prospects, not only in entertainment but hopefully in other fields as well.

Phan Duc Trung - Vice chairman, Vietnam Blockchain Association

South Korea and Vietnam to share blockchain know-how

Currently, many large corporations and companies in the fields of banking, healthcare, energy, insurance, tourism, real estate, science and education have all applied blockchain.

South Korea is one of the most influential markets in entertainment and art, and has a developed blockchain market that is shaped like a stock market. Technology connections with South Korea in the near future would help us to promote the education market, shape blockchain, NFT, and access legal knowledge, limiting risks in this field.

Businesses looking to embrace digital transformation can use blockchain in particular areas through having a pilot budget to promote products such as loyalty, or blockchain applications such as the so-called private or enterprise chain.

For the application to be really useful, it needs a business owner who has a holistic view of digital transformation, and dares to take on new challenges, as well as have a good enough budget to approach this field.

Hoang Van Huay - Chairman Vietnam Blockchain Association

South Korea and Vietnam to share blockchain know-how

Our association has carried out a series of works towards the effective application of blockchain technology for the country’s socioeconomic development, including supporting and encouraging businesses to apply the technology.

We are also set to popularise blockchain knowledge for people and businesses as well. The association will be discussing with legislative bodies to have in place more comprehensive regulations for blockchain. This is a way to support and help local businesses feel secure in applying the technology to their production and business.

We have the advantage of learning valued experiences through development cooperation with countries, such as South Korea. Although South Korea began to embrace blockchain not too long ago, the country has encountered diverse problems in knowledge, finance, science and technology, training, and more. Therefore, popularising blockchain through media channels proves important for people to understand blockchain tech.

Tran Quang Chien - Founder, ONUSChain

South Korea and Vietnam to share blockchain know-how

In 2021, blockchain technology blossomed, and by 2025, 10 per cent of global GDP will be kept on the blockchain, according to the World Economic Forum. Over 80 out of 100 of the world’s top enterprises use it.

When enterprises use blockchain technology and construct their own blockchain systems, legal constraints pose the greatest threat, particularly in Vietnam, where there is no legal structure for enterprises using blockchain technology. The second concern is that when the blockchain application requires an infrastructure system, unlike traditional database systems that just require a single server, it will need numerous server networks, particularly when several parties collaborate to construct a system.

The third risk relates to people. In order to integrate blockchain, we will require exceptionally skilled specialists.

Choi Kang-Yong, Chairman NBN News Agency

South Korea and Vietnam to share blockchain know-how

The globe is witnessing the transition towards digital assets. With the Fourth Industrial Revolution, blockchain technology is now under a heavy focus and at the centre of the business revolution.

The cryptocurrency market in South Korea is $23 billion, with more 7 million users trading every day. There is a strong need to rethink today’s capital market and approach the digital asset market with a wider perspective and in the aim to cope with the current global recession, inflation, and increase of interest in the capital market.

The financial market will continue to see changes, thus we hope that cooperation between South Korea and Vietnam will create a premise for solid partnerships.

We will continue to strengthen our cooperation in order to turn this coalition into a global leader for this revolutionary time.

Grey Trinh - Chairman D.lion Holdings

South Korea and Vietnam to share blockchain know-how

Vietnam has been known as one of the countries approaching blockchain technology and using crypto rapidly and effectively. Many projects are originating from Vietnam, the founders are Vietnamese who have harvested many successes in the international market, thereby creating great development fundamentals for the next generation as well as paving the way for Vietnamese tech startups to reach the global market.

These founders are knowledgeable about the market, having wide and profound relationships, and are knowledgeable not only in how to work with large countries but also understand the laws of countries already having a clear legal framework about this field.

We can start consulting these experts, then working with relevant competent authorities to discuss and make suggestions and proposals suitable to the Vietnamese market which comply with national laws to attract money flow to Vietnam, helping the country to spur development and leave bigger influence not only in ASEAN, but also beyond.

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