A leading South Korean financial holding company, KB Financial Group has received a patent for the blockchain-security solution for financial applications.
According to local source Digital Times, KB Financial has more than 342 billion of assets and manages several domestic and foreign subsidiaries, including KB Kookmin Bank, the largest Bank in the country and 60th largest Bank worldwide as of 2017.
KB Financial patent is directed to a solution based on blockchain for improvement “important security programs for financial applications”.
The new technology reportedly separates this program security from individual applications, which means that the security will rise in several applications, and users will not need to upgrade new versions of each application separately.
According to the developers, private keys for encrypting and decrypting underlying the new security solution will be separated and stored in the blockchain system, and this means that even if a physical device (e.g., cell phone) is compromised or stolen, any illegal transaction will be blocked.
It is reported that KB Financial plans to implement their proprietary solution in overseas markets such as Southeast Asia, where they are considered “particularly vulnerable” due to the popularity of downloading pirated apps for devices such as cell phones.
Previously, KB Financial has published its own report on cryptocurrency investment, the results of which revealed that almost 75% do not intend to invest in a new asset class.
In June, the Central Bank of South Korea announced that it plans to release its own digital currency, as fears that it could destabilize the economy.