Woori Financial Group develops financial services through Klaytn
Woori Financial Group signed an agreement with Ground X, Kakao’s blockchain subsidiary, to develop financial services utilizing blockchain technologies. Ground X runs Klaytn, a public blockchain platform. What’s the agreement about? Based on the agreement, the two companies plan to develop financial services on the blockchain and create a sustainable business model to enable the two firms to work together. Woori Card plans to develop a business model for payments using the technologies of Ground X. Why is the holding company seeking new business? Woori Financial Group is a financial holding company. But the business relies on the income of banking subsidiaries. It is crucial to diversify income. The fact that Woori Bank was the most active seller of DLS products, which have become problematic, reflects the bank’s overemphasis on wealth management as a means of diversifying profit. Collaborating with Klaytn is part of the effort to lower reliance on the bank and to discover new business models. Woori Bank in July signed business agreement with six firms - SK Telecom, KT, LG U+, Samsung Electronics, KEB Hana Bank and Koscom - to develop a mobile digital certificate as part of its effort to expand the blockchain ecosystem. “We agree with Ground X’s idea of realizing blockchain services that are closely connected to people’s lives,” said a spokesperson for Woori Financial Group. “Based on the Ground X blockchain platform, we plan to introduce customers to useful financial services.” Jess’ note Ground X has been rapidly developing since it introduced Klaytn, its mainnet. Ground X’s collaborations with banks, including Shinhan Bank last month, are notable. It signed the deal with Shinhan to develop blockchain security technologies.