Blockchain startup ICONLOOP has announced that it raised KRW 10 billion (over USD 8 million) in Series A funding. This is the very first VC funding since its formation in 2016.
Seven investment companies including Korea Technology Finance Corporation (KOTEC) and T.S. Investment participated in this round.
Developing blockchain-based ID authentication service
Having achieved the Series A funding, ICONLOOP will focus on the launch of its DID service ‘my-ID’ and expansion of ‘my-ID Alliance’. ‘my-ID’ is planned to be launched as a commercialized service in the first half of next year. According to the company, my-ID can be used for opening banking accounts without face-to-face verification and “allows for ID authentication information to be saved to the user’s mobile phone so that users can reuse said information to open further accounts or access other services that require identification.”
Beginning with the financial sector, ICONLOOP will expand the my-ID Alliance to other industries such as fintech, e-commerce, sharing economy, and healthcare to create a pioneering example of digital identification utilizing blockchain. Iconloop will use the money for further promotion of the my-ID Alliance consisting of 27 organizations from various industries including the aforementioned.
An official from KOTEC said, “The blockchain technology is evolving into practical applications such as decentralized ID services in line with the global trend giving users back the personal data sovereignty.” Adding, “We believe ICONLOOP acquired technological advantages and know-hows from many major projects with various financial and public organizations and it will lead the growth of the blockchain industry in Korea after it dominates the market with its my-ID service.”
South Korea’s approach to blockchain
Earlier this year, the Seoul Metropolitan Government chose Iconloop’s blockchain platform to issue mobile letters of appointment to its Blockchain Governance Team. At the time, J.H. Kim, council member of the Icon Foundation and CEO of Iconloop, said that the company expects:
“The increase in public blockchain use-cases led by government, and this appointment letter issuance is a starting point to show a clear example of how blockchain can be used in government.”
This summer, news broke that the capital is looking to release a native city-wide digital currency dubbed S-coin, the objective of which will be to encourage citizens to participate in governance, facilitate cooperation between citizens and collect information.
South Korea’s oldest bank, Shinhan Bank, recently partnered with two other companies to collectively develop a Private Key Management System for its banking services and products. The The primary checks of the brand new systems are expected to be in October.