South Korean Banks Adopt Blockchain for Streamlined Civil Servant Loans

WEMIX PLAY Adds Four More Games to Its LineupSouth Korean gaming publisher Wemade has taken a stride by signing contracts with four distinct gaming developers to integrate their games onto WEMIX PLAY, Wemade’s blockchain gaming platform. This news arrives merely a week after the onboarding of the preceding three games.Photo by Sean Do on UnsplashTank battle gameAmong the additions is “Tank Battle Heroes: World War,” developed by T-Bull S.A., a mobile game developer based in Poland. Its forthcoming contribution stands out as a 3D multiplayer tank battle game, featuring realistic snowy and desert environments. Gamers will enjoy Tank Battle Heroes by defending their territory and conquering rival territories.Action RPGJoining the roster is “Wind of Chaos,” an action role-playing game designed by Altwolf Software, a company hailing from Belarus. In “Wind of Chaos,” players immerse themselves as pirates, opting for individual or group endeavors in their quest to destroy enemy ships and engage in adrenaline-inducing battles.3D artillery gameHong Kong’s tech enterprise, HK Pharos Tech, is set to introduce “TNT Bomb Commando,” a 3D artillery game. The game’s appeal lies in the extensive customization options for characters, enabling gamers to personalize in-game avatars with over 100 costumes.Strategy puzzle RPGAnother notable addition is The First Hunter, a strategy puzzle RPG that is currently under development by Korean gaming company Captains. Rooted in the narrative of an online novel of the same name, The First Hunter offers gamers a unique universe to explore. Engaging in battles to collect a wide range of characters and nurture their growth is a central facet of the gameplay experience.

A Cambodia-headquartered financial group recently cut off from the U.S. financial system is suspected of having operated in South Korea, raising fresh questions about cross-border crypto and currency flows tied to the group. According to the Dong-A Ilbo, which cited data from the Korea Customs Service (KCS), Huione Group—now sanctioned by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN)—appears to have run a currency exchange in Seoul from 2018 to July 2024. The outlet reported that a banner on the premises displayed a logo identical to Huione’s, prompting suspicions about its ownership and control.Photo by Aleksandar Pasaric on PexelsTies to North Korean hackersThe exchange reported conducting roughly $20,000 in annual currency conversions during that period, excluding cryptocurrency transactions. The timeline overlaps with a period in which Huione Group reportedly received $150,000 in cryptocurrency from the North Korean hacking group Lazarus.  Connections also extend to Cambodia. Panda Bank—a local lender that shares a building with Huione subsidiaries—supports USDT transactions originating from South Korea. Panda Bank director He Yanming is listed as the owner of Huione Crypto, a virtual asset service provider (VASP), suggesting potential links between operations in Seoul and Phnom Penh. These developments come against the backdrop of a U.S. investigation disclosed in May, in which FinCEN said Huione’s business networks, including payments arm Huione Pay, collectively laundered at least $4 billion in illicit proceeds between August 2021 and January 2025. Crypto used in $2.6B illegal conversionsMeanwhile, recent KCS data also shows a rise in illegal currency conversions involving cryptocurrency by foreign nationals. The Korea Economic Daily reported conversions totaling 432 billion won ($302 million) in 2021, climbing to 836 billion won ($584.5 million) in 2023 and 956 billion won ($668.4 million) last year. Over the past eight years, the total amount involved in such cases reached 3.7 trillion won ($2.59 billion) across 28 instances. By value, Chinese nationals accounted for 84.1% of the total, followed by Australians (11.1%), Vietnamese (3.2%), and Russians (1.6%). The growing prevalence of cryptocurrency in illicit activity parallels a broader surge in crypto investment within the country. Many South Koreans have turned to digital assets, often with home ownership as a long-term goal. Trading on local exchanges, Bloomberg reported, is heavily skewed toward more volatile altcoins, which make up more than 80% of total volume.  That stands in contrast to global markets, where investors largely focus on Bitcoin and Ethereum, which together make up more than half of overall trading. The momentum in local crypto investment intensified after Donald Trump’s U.S. presidential victory, with crypto trading in Korea reaching $27 billion in December 2024, about 80% of turnover on the KOSPI stock index. The investigation underscores the growing challenge for regulators in tracking and containing cross-border financial networks that rely on cryptocurrency and informal money transfers. As crypto adoption deepens in South Korea and scrutiny widens abroad, authorities find themselves navigating an increasingly intricate intersection of financial opportunity, enforcement, and risk. 

Korea’s KFTC launches blockchain-powered loan service for public servantsThe Korea Financial Telecommunications and Clearings Institute (KFTC) today launched a new blockchain-based loan service tailored specifically for public servants. This initiative is a collaborative effort with the Government Employees Pension Service (GEPS) and involves five banks: BNK Kyongnam Bank, Busan Bank, Woori Bank, Kwangju Bank and Jeonbuk Bank.Photo by REDioACTIVE on PixabaySimplified loan processAdministered by GEPS, this loan program offers loans up to KRW 50 million (approximately $38,600) to government employees based on their projected retirement benefits and years of service. Leveraging the joint financial blockchain system, KFTC has established an infrastructure to issue and verify digital loan recommendation letters, simplifying the loan application process for public servants.Up until now, the loan application process has been cumbersome, requiring government employees to obtain a recommendation letter from GEPS and physically submit it at a bank branch. The new service streamlines this process by allowing them to apply for loans at bank branches or through mobile banking using digitized recommendation letters.More banks to joinKFTC and GEPS are set to increase the number of participating banks, allowing government employees to access loan services at a total of 10 banks. Furthermore, KFTC and GEPS intend to introduce additional financial products that utilize recommendation letters and verification processes underpinned by blockchain technology.The plan indicates that starting early next year, five additional banks will participate in this initiative. These banks are KB Kookmin Bank, Nonghyup Bank, Daegu Bank, Hana Bank and Korea Post.In a statement, KFTC stated its plans to further expand identification verification services within the financial sector, aiming to streamline the application processes for various financial products, including deposits and loans.