NongHyup Bank Launches Blockchain-Based Tax Refund Digitalization Initiative

Simplifying VAT Refund Procedures with Stablecoins

On November 13, NH NongHyup Bank announced that it is currently working on a "Tax Refund Digitalization PoC (Proof of Concept)" project to digitalize the value-added tax (VAT) refund process for overseas tourists after they make purchases.

The core of this pilot project is to automate the existing complex manual VAT refund procedures using blockchain technology and to establish a real-time refund system by applying stablecoins to institutional settlement and currency exchange processes. According to NongHyup Bank, this will reduce paperwork and airport waiting times, securely store refund information on the blockchain to eliminate the risk of loss, and ultimately enhance convenience for tourists and efficiency for businesses at the same time.

The project is being carried out in collaboration with global technology and payment companies such as Fireblocks, Avalanche, Mastercard, and Worldpay. The refund process is being automated through smart contracts on a dedicated, regulatory-compliant blockchain network provided by Avalanche, and the technical feasibility and potential for service application are being verified without the movement of actual customer information or funds.

On the 11th, Choi Unjae, Executive Vice President of Digital Strategy Division at NongHyup Bank, participated in the Singapore FinTech Festival (SFF) and gave a presentation. NongHyup Bank

This case of digital innovation by NongHyup Bank was introduced at the "Insights Forum," an official event of the "2025 Singapore FinTech Festival," the largest fintech event in Asia.

At the event, Choi Unjae, Executive Vice President of Digital Strategy Division at NongHyup Bank, stated, "The stablecoin-based refund model is a case that demonstrates how blockchain can enhance customer convenience and strengthen national competitiveness," adding, "We will lead the digital transformation of Korea's tourism economy by improving the efficiency of cross-border payments and settlements."

A NongHyup Bank representative commented, "This demonstration is a case that shows how blockchain technology can directly contribute to the efficiency of financial services and the enhancement of customer benefits," and added, "In the future, we will review ways to expand domestic and international payment and refund services using stablecoins in line with the direction of financial authorities' institutionalization."