South Korea’s Set to Slash Fees for Small Shops

South Korea is moving fast to build a new payment system based on blockchain. The goal is simple. It wants to cut costs for small businesses and make digital payments easier for everyone.

What Is the Deposit Token Project?

The government started a big project called the Deposit Token-Based Payment Infrastructure Expansion Project. It uses deposit tokens that come from the Bank of Korea. These tokens work like digital money that banks issue. People can use them to pay at stores without needing a whole new system.

The project links the Bank of Korea’s Project Hangang platform with normal payment tools. This means shops do not have to buy new machines. They can keep using the terminals they already have.

Who Is Involved and How Much Will It Cost?

The Korea Financial Telecommunications and Clearings Institute leads the work. Nine banks, eight payment companies, and two big merchant groups are part of the team. The total budget is 9.6 billion won. About 3 billion won will go to small firms and startups for development and promotion.

The Korea Internet and Security Agency and the Ministry of Science and ICT launched the project on July 22. They want to turn the lessons from the central bank test into real services that people use every day.

Why This Matters for Small Businesses

Small shops often pay high fees for card payments. The new system aims to lower those fees by making settlements faster and simpler. Merchants will accept payments through phone apps or even plastic cards that use deposit tokens.

Because the system uses existing networks, rollout can happen quickly. Consumers will open a wallet app on their phone and pay with tokens from their bank account. No big changes needed at the checkout counter.

Plans for Government Use and Wider Rollout

The Ministry of Finance and Economy will test deposit tokens for paying government bills. Later, the system could connect to the dBrain digital budget tool to manage public money better.

Officials also want to bring deposit tokens into more public services. This could create new jobs for blockchain companies and help the whole crypto ecosystem grow in South Korea.

What Comes Next?

Pilot tests will start soon. The team will watch how well the system works for both buyers and sellers. If it succeeds, more banks and shops could join. The project shows how blockchain can move from tests to everyday use without big extra costs.

South Korea is betting that deposit tokens will make payments cheaper, faster, and more open. Small businesses stand to gain the most from lower fees and simpler tools.