Korean govt to fully digitalize trade procedures by 2021

The South Korean government will back digitalization of exports platform through employment of big data and artificial intelligence to save exporters more than 90 percent in time and cost spent on administrative procedures.

Under the outline announced Monday, the government will establish a comprehensive data center from 2020 to 2021 to provide information related to exports and overseas investments to help small- and mid-sized companies to look for opportunities in the new market.

Banks and financial institutions including Korea International Trade Association will launch blockchain-based foreign exchange transaction platform in December to allow exporters to conduct foreign exchange trades without submitting 17 handwritten documents and simplify the process.

The government will also establish a digital trade platform called u-Trade Hub 2.0 (uTH 2.0) to allow companies to handle every process related to overseas shipments from procurement, contract signing, customs clearance to distribution online. The digital platform will significantly enhance efficiency in export procedures by reducing export reporting time to just five minutes from the current one hour and cost to 380,000 won ($321.22) from 4.22 million won on average.

The government plans to export the platform to neighboring countries targeted under the so-called New Southern and Northern Policies to preoccupy global standards, and seek intergovernmental agreement and hold consulting and briefing sessions to look for new markets.

It will set up a new exclusive zone for material, part and equipment companies at next year’s Buy Korea event held by Korea Trade-Investment Promotion Agency (KOTRA) to promote exports of locally-produced materials and components. It will encourage public institutions to divide business-to-business platforms to three categories – industry, company and market – to provide customized support and enhance data sharing.

The government will invest 4 billion won to 70 shopping malls to help them tap into the overseas markets by riding on the popularity of Korean culture. It will step up marketing and promotion of Korean products on foreign e-commerce platform during Korea Sale Festa, the nation’s biggest shopping event equivalent to Black Friday that falls on November.

“We have come up with the measures to provide practical help to exporters and lead the global digital trade market” said vice trade minister Chung Seung-il.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]