Science ministry allows blockchain currency for government operating expenses

The science ministry said Tuesday it has approved a pilot program allowing government agencies to execute operating expenses, such as work promotion funds, using blockchain-based digital currency. The decision came during the 45th ICT Regulatory Sandbox Deliberation Committee meeting, which designated nine new special exemption cases.

Under the new framework, officials can settle accounts via smartphone QR codes instead of relying solely on traditional government purchase cards. The ministry expects this shift to enable immediate settlement and minimize transaction fees. It also noted that managing eligible business categories through the system would enhance transparency in how public funds are spent.

Participating financial institutions include KB Kookmin Bank, Nonghyup Bank, Shinhan Bank, Woori Bank, SME Bank, and Hana Bank. The exemption temporarily overrides the National Treasury Fund Management Act, which previously restricted these expenditures to physical card transactions.

The committee also approved two projects by JM Company to digitize urban renewal processes. One case permits the electronic delivery of notices for establishing housing redevelopment associations, replacing the mandatory registered mail requirement. Recipients who do not consent to electronic notification will continue to receive documents via post, while those who fail to check digital messages will be sent reminders.

A second exemption grants JM Company approval to host hybrid resident meetings and conduct electronic voting for redevelopment committees. Current rules forbid online gatherings and digital ballots, but this special case allows mobile platforms to facilitate both onsite and remote participation. Voting rights via the digital channel remain limited to residents who provide prior consent.

KT received approval for a mobile electronic billing service leveraging certified electronic document relay technology. This exemption allows the company to directly distribute bills and statements generated internally to customers, bypassing the legal restriction that currently limits relay operators to circulating documents created by third parties.

In a separate move, the committee converted an existing special exemption for Media Scope's open singing booth service into a temporary license. The Ministry of Culture, Sports and Tourism indicated that relevant laws require revision, prompting this status change to ensure the operator can continue services stably during the legislative review.

Vice Minister Bae Kyung-hoon emphasized that these measures expand the application of digital technology across public administration and daily life. He pledged continued cooperation with related ministries to turn successful pilot results into reasonable legal and institutional improvements.