The Ministry of Economy and Finance plans to replace the current government credit card system with a blockchain-based infrastructure. With this shift, public expenditures will become more traceable and efficient, allowing taxpayers to better understand how funds are used. The initiative aims to modernize administrative processes while strengthening financial oversight.
Under the existing system, government employees must submit additional reports for expenses made outside working hours, creating a significant administrative burden. The new model will predefine spending rules, restricting transactions to approved categories and timeframes. This approach is expected to prevent unauthorized or improper spending from the outset.
The pilot program is set to launch in Sejong City in the fourth quarter, with plans for nationwide expansion if successful. By removing intermediaries, the system could reduce transaction costs and support small businesses. The move also aligns with South Korea’s broader efforts to build a robust regulatory framework for digital assets and emerging financial technologies.
