South Korea’s KT Launches Local Blockchain Payment Solution

Brian Newar 2020-01-17

KT announced today that it launched a card payment solution called ‘Dairoam’ which is based on a blockchain platform in Jeolla province’s Iksan city. In Korean, ‘dairoam’ (다이로움) can be translated as ‘the universally beneficial option’.

An image of the Dairoam card from Iksan City, South Korea. *courtesy*

Dairoam can be used in any store or outlet throughout Iksan City where credit cards are accepted, including department stores, supermarkets, and mom and pop shops. The cards can be purchased at Hana Bank, then reloaded through the blockchain-based Good Pay mobile app.

Blockchain technology is being used for this local payment solution as a kind of test bed for larger, far more comprehensive payment solutions that KT is likely developing under the radar. Transactions via blockchain are transparent and the data is readily available, significantly reducing the risk of counterfeit and hacks. The implications from a personal financial standpoint and from a law enforcement standpoint of a successful run for Dairoam could lead to broader national use of such a program as South Korea is attempting to eliminate physical currency.

Heonyool Chung, Iksan City Chairman and Kyudae Jo, chairman of the Iksan city council, visit a store in Iksan to demonstrate the use of Dairoam. *courtesy*

Iksan City will operate an incentive program to motivate citizens to use Dairoam. The program pays an additional 10% of your recharge amount through the end of February.

A KT official stated that with the Dairoam program, they were “actively contributing to the vitalization of Iksan’s local economy.”

While ‘The Universally Beneficial Option’ is a mouthful to pronounce in English, ‘Dairoam’ in Korean, it is a sprightly, cute name typical for such small-scale yet hopeful government programs.