The city of Busan was designated as a red tape-free special zone for blockchain businesses, laying the foundation for launching a variety of blockchain services, but not allowed to do crypto-currency-related business.
The ministry of SMED and start-ups said on July 27 that 7 metropolitan cities and provinces across the country started to take off as restrictions-free special zone for the blockchain business.
The 7 red tape –free zones include Busan for blockchain technology, Gwangwon for digital healthcare, Daegu for smart wellness, Jeonam for e-mobility, Chungbuk for smart security) , Gyeongbuk for a next generation of battery recycling, and Sejong for autonomous driving).
According to the ministry, the 7 zones are expected to collectively allure about 400 companies to invest in the regions, creating 3,500 new jobs and 700 billion won in revenues combined.
Busan is one of the 7 special zones that will launch forgery-and counterfeit-free certification and authentication businesses, especially off-chain-type certification technology with no restrictions.
The off-chain technology is to store very sensitive personal data on server computers, not blockchain, but keep just hash values on the chain, which refer to the storage location of data.
The off-chain technology has faces severe restrictions so far in its usages, as it remained so ambiguous to define whether storing hash values is equivalent to keeping personal data on the chain, or not.
Businesses in Busan City came to be privileged to exempt from such restrictions, because the activity of erasing personal data from off chain will be defined as a tantamount to eliminating data from blockchain.
The red tape-free privilege will allow businesses in Busan to launch a variety of blockchain services like fishery history tracking system digital currencies and tourism services with no restrictions in using personal data.
As a result, 250 companies are expected to be relocated into Busan, or be newly established to do blockchain-related businesses , creating 681 new jobs. Collectively, they are expected to newly generate 89.5 billion won in production and 62.9 billion won in add-on value.
Yet, no crypto-currency related businesses like ICO would not be allowed to be launched