MOLIT Invests 20 Billion Won to Build a Blockchain-Based One-Stop Real Estate Transaction System

The Ministry of Land, Infrastructure and Transport (MOLIT) builds a blockchain-based one-stop real estate transaction platform. They plan to build a real estate electronic contract system that can process contracts and registrations at once by applying blockchain technology to offline real estate transaction.

According to the industry on the 7th, MOLIT plans to form a consultative group to build blockchain-based real estate transaction platform and to conduct business process reengineering (BPR) and information strategic planning (ISP) by the end of this year.

According to related industries on the 8th, MOLIT started to form a consultative group for the establishment of blockchain-based real estate transaction platform. The consultative group includes real estate-related institutions such as financial institutions and government offices.

This consultative group will conduct BRP and ISP business to set up blockchain-based real estate transaction platform this year. The business plan includes establishing system for utilizing real estate transaction data, designing a platform, connecting public ledgers, and discovering service models.

MOLIT disclosed the pre-standards of BPR and ISP business to set up blockchain-based real estate transaction platform through the Public Procurement Service from the 2nd. Disclosure of pre-standards is a process to supplement the business by collecting opinions from related companies before ordering service of the project.

MOLIT plans to launch the project after selecting a project operator by June. They will establish the framework of the project during this year, promote the information business from next year to 2023, and invest about 20 billion won in the project for four years.

In 2018, MOLIT applied blockchain technology to real estate transaction system for the first time through ‘blockchain pilot project for public sector’ hosted by the Ministry of Science and ICT (MSIT) and Korea Internet and Security Agency (KISA). At that time, MOLIT conducted a pilot project that allows real estate transaction parties to visit banks without a paper certificate and get loans by sharing the land register data in real time through blockchain with local governments and Korea Financial Telecommunications and Clearing Institute (KFTC).

MOLIT announced, “From this year, we will set up a blockchain-based real estate transaction and information sharing platform with a wider range of related institutions, such as banks, courts, administrative agencies, and private platforms.” “We will establish strategies in many ways, such as verifying blockchain technology, calculating budgets, and developing business models,” they added.