Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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A Study of How Blockchain Technology is Applied to Trade Finance and Its Challenges

블록체인 기술의 무역금융 적용과 과제에 관한 연구

  • Yun-Seok Hur (Department of International Trade, Jeju University) ;
  • Jong-il Moon (Department of International Trade, Jeju University)
  • Received : 2022.12.04
  • Accepted : 2022.12.29
  • Published : 2022.12.30
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Abstract

The COVID-19 pandemic has disrupted supply chains across the world. When the pandemic broke out, the disruptions were mainly due to the lockdowns imposed in various countries. The WTO has predicted that the pandemic might cause world trade to decline by 13 to 32 per cent in 2020. This paper will examine the implications of COVID-19 on digital trade, particularly the use of blockchain in the Asia Pacific. The Asia Pacific (particularly Singapore and Hong Kong) is a leader in the use of digital technologies. This paper will thus attempt to draw out lessons from the first movers for the rest of Asia. It will examine the bottlenecks in the application of this technology in the Asia Pacific countries, and the need for regulatory changes in the Asia-Pacific. It will trace the technology's barriers to adoption, both as regards interoperability, and regulatory framework. The advantages of blockchain technology in trade finance are clear; it can promote trade efficiency, mitigate risk and expand trade to other regions. However, earlier efforts to introduce digital technologies have failed. More collaborative efforts are required, so that networks can connect seamlessly on a single technology platform, and meet the demand for trade finance. The COVID-19 pandemic seems to have provided an enabling environment for the intensification of digital efforts, increasing their urgency; should these measures indeed successfully occur, they will improve the resiliency of supply chains across the region.

Keywords

Acknowledgement

이 논문은 2022학년도 제주대학교 교원성과지원사업에 의하여 연구되었음.

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