Emerging Blockchain Industry in South Korea: Growth Trends and Adoption in Manufacturing

Myungkoo Song ()
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Myungkoo Song: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 25-7, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: Roughly speaking, blockchain is a digital ledger that records transactions in a distributed database spread across multiple computers. Its decentralized nature enhances security, making blockchain-based platforms or applications highly resilient. In addition, by enabling a permanent, immutable, and transparent record of transactions, blockchain has the potential to foster trust without the need for intermediaries, especially in environments where trusted third parties are scarce. There is also growing interest in blockchain in the manufacturing sector. Manufacturers worldwide are currently navigating a complex landscape of challenges, including intense global competition, supply chain disruptions, and increasing demands for sustainability. South Korean manufacturers in particular are facing substantial headwinds due to the rise of Chinese manufacturers, global trade tensions, and a demographic crisis driven by low birth rates and an aging population. To address these challenges, firms are looking intensely at adopting emerging technologies such as blockchain, artificial intelligence (AI), and quantum computing. Manufacturing interest in blockchain owes to the technology’s ability to enhance data integrity and foster trust among parties. Firms also view the technology as a key to unlocking innovative solutions to the aforementioned industry challenges. In this paper, I explore the growth of the blockchain industry in South Korea and examine the potential of blockchain technology in the country’s manufacturing sector. First, I examine the current state of the country’s blockchain industry and its adoption in the manufacturing sector. Next, I analyze use cases and assess how blockchain can improve competitiveness in the sector. Finally, I discuss the role of government policy in facilitating blockchain integration to strengthen the competitiveness of the manufacturing sector further.

Keywords: blockchain; ICT; digital technology; cryptocurrency; industrial blockchain; Bitcoin; manufacturing; decentralization; digital ledgers; Korean blockchain industry; advanced digital industry; South Korea; Korea Institute for Industrial Economics and Trade; KIET (search for similar items in EconPapers)
JEL-codes: L60 L86 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2025-04-30
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