LG CNS announced on May 30 that the company signed a business agreement with R3, the world's largest specialized financial blockchain (distributed ledger technology) consortium,
Founded in 2015, R3 has roughly 80 large financial institutions around the world. Five Korean financial companies including KEB Hana Bank and Shinhan Bank have joined R3. LG CNS became the first Korean information technology company that joined the consortium.
Blockchains called digital ledgers distribute and store data in the form of a bundle and share them with those involved in transaction. They have the advantages of low installation cost and less time. The spread of information makes it difficult to fake and fabricate information. R3's platform Corda is a finance-specific method.
The direct participation of big Korean and foreign banks boosted the stability of Corda. Not all participants but traders only keep ledgers, which results in high processing speeds. LG CNS is planning to create a blockchain ecosystem by forming a three-party consultative body with R3 and promising Korean start-ups. The three-party block-chain consultative body will provide blockchain services specialized in Korea’s financial environments by setting up domestic standards so that developers and companies can easily use blockchains.
"We will provide various financial services using a global blockchain platform with this agreement as a beginning," said Kim Hong-keun, an executive director at LG CNS’s Financial Business Division. "We are planning to expand our blockchain service to other industries as a whole in the future."