Sejong Telecom and Busan Bank Pioneer Blockchain-Based Real Estate Fund Market

Sejong Telecom Builds Busan Bank Non-Face-to-Face Account Opening System on Digital Securities Revenue Platform

[Asia Economy Reporter Cha Min-young] Sejong Telecom announced on the 11th that it has signed an account management service agreement related to the ‘blockchain-based digital revenue securities trading platform service’ for real estate collective investment with BNK Busan Bank.

This account management service agreement involves establishing Busan Bank’s non-face-to-face account opening system within Sejong Telecom’s platform, allowing users to easily subscribe to funds with small amounts. The goal is to safely manage investors’ funds and provide the service in compliance with the electronic registration method under the Electronic Securities Act.

Sejong Telecom will establish a management system for real estate fund sales and peer-to-peer transaction services, investor protection mechanisms based on blockchain, and transparency assurance. Security has been enhanced by applying distributed ledger technology based on its self-developed blockchain mainnet ‘Bluebrick.’

Busan Bank will operate as a provider of financial account management and monitoring services, including non-face-to-face account opening services, investor deposit trust and fund asset custody services, deposit and withdrawal of investors’ Busan Bank accounts, and support for managing fund customer accounts linked with the Korea Securities Depository. However, it will not be directly involved in real estate fund sales and transactions.

Sejong Telecom expects this collaboration to increase accessibility to real estate fund investments for general investors. It explained that real estate investment, which was originally the exclusive domain of a few high-net-worth investors centered on private equity funds, will become freely accessible to small investors. Real estate funds, which are difficult to redeem, will also be redeemable through peer-to-peer transactions.

Anyone with a Busan Bank account can use this service, and the sale and trading of funds will be conducted through digital certificates matched with revenue securities issued under the Capital Markets Act. The trading method involves multilateral counterparty trading within the platform, and by utilizing the blockchain-based platform, recording and sharing of fund management information is possible, thereby enhancing transparency.

Park Hyo-jin, head of Sejong Telecom, said, “This case is an innovative step proving the transparency and efficiency of financial transactions through blockchain technology,” adding, “It will be a meaningful opportunity to verify a blockchain-based protocol economy ecosystem where anyone can equally share investment and benefit opportunities while complying with existing related laws such as electronic securities.”

Lee Joo-hyung, head of Digital Finance Division at Busan Bank, said, “We expect great synergy from the meeting of Busan Bank’s financial services and Sejong Telecom’s blockchain technology,” and added, “Busan Bank will continue to do its best to provide financial services based on blockchain and digital technology as the first operator of the Busan Blockchain Regulatory Free Zone.”

Meanwhile, the two companies have also agreed to focus on developing and launching various financial products that combine Sejong Telecom’s digital asset trading platform and Busan Bank’s financial services, in addition to mutual cooperation for promoting and revitalizing related services.