(Image: Kobiz Media)
SEOUL, Oct. 31 (Korea Bizwire) — In the near future, blockchain technology will be incorporated into real estate databases, allowing users to gain access to relevant official documents without having to submit physical certifications.
The Ministry of Land, Infrastructure and Transport and the Ministry of Science and Technology yesterday revealed plans to create a real estate database system to be launched in Jeju next year on a trial basis.
Blockchain technology allows digital information to be distributed and shared by various participants.
The newly proposed system will utilize blockchain technology to exchange real-estate related data in real time in place of having to submit paper documents to financial institutions in person.
For example, individuals who are seeking mortgage loans will no longer be asked to provide real estate certificates.
Bank employees would be able to check real estate ownership via the land register made available through the blockchain system.
The trial service of the blockchain-based system will commence in Jeju in January of next year with 11 financial institutions on board. Various types of information included in land registers will be provided to banks.
An independent system that tracks real estate transactions is also in the works, allowing users to carry out a wider range of real estate services online including land contracts and registration.
At present, individuals must submit paper certificates regarding properties to land registration offices, the tax office and banks in order to sell or buy real estate properties.
The fees associated with issuing such documents total approximately 129.2 billion won per year. In the process, documents are easily forged and used for various real estate-related crimes.
Sharing of information via blockchain technology, experts believe, could help minimize the costs that result from current real estate practices and lower the number of real-estate related crimes.
H. S. Seo (hsseo@koreabizwire.com)
