According to one press release on the 1st of October, Korea Investment Partners or KIP, which is the most significant venture capital (VC) firm in South Korea, is investing in its first blockchain startup, known as TEMCO.
KIP is known for investments in high-ranking firms
The Korea Investment Partners is well-known for its investments in high-ranking firms which include Naver, which is the largest search engine of Korea and is also the owner of the famous Japanese messaging app LINE, and Korean messaging company Kakao, among others. Both LINE and giant Kakao have made many inroads into the cryptocurrency space, with the former launching of its own crypto token and exchange, as well as the latter establishing its own blockchain subsidiary.
According to the official website of KIP, the blockchain startup TEMCO specializes in supply chain management solutions which use smart contracts on a public blockchain to support enterprises securely track products in an auditable way, from distribution to eventual consumption. The startup is also going to launch a token pre-sale in November of this year.
Korea is still the main presence in crypto space
The backing of an ICO or Initial Coin Offering by KIP actually comes around a month after the venture enterprise division of Korea controversially decided to place crypto-related business in the same category as organizations which handlebars and nightclubs, in that way denying enterprises in the space a wide range of benefits, which include tax reductions.
Nevertheless, Korea is still a significant presence in the crypto space, having the third largest cryptocurrency exchange market on the planet, after the U.S. and Japan. This spring, the government of South Korea revealed a positive reorientation for domestic crypto, as well as blockchain legislation, hinting at plans to make domestic ICOs legal once again, the debate over which it has continued this summer.
Korean regulators to introduce new legislation
In July this year, it has been reported that the regulators of South Korea had pledged to introduce new legislation which is going to be conducive to blockchain investment, the same month as three of the Korean ministries were said to be working in order to create the terminal draft of a complete blockchain industry classification scheme for the country.
In August the same year, the finance ministry of the country has announced that it is going to be investing around $4.4 billion in 2019, in order to nurture eight sectors of the domestic economy, which include the blockchain sector too.