NH Nonghyup Financial institution introduced on Nov. 13 that it’s selling the “Tax Refund Digitization PoC (Proof of Idea)” to digitize the value-added tax (VAT) refund course of that abroad vacationers obtain after buying items.
The core of this pilot undertaking is to automate the prevailing complicated handbook VAT refund procedures utilizing blockchain expertise and set up a real-time refund system by making use of stablecoins to inter-institutional settlement and foreign money change procedures. By this, it’s attainable to concurrently improve vacationer comfort and enterprise effectivity by lowering paperwork and airport ready procedures, and eliminating the chance of loss by securely storing refund info on the blockchain.
The undertaking is being performed collectively with world expertise and fee firms together with Fireblocks, Avalanche, Mastercard, and Worldpay. The refund course of is being automated utilizing sensible contracts on the devoted regulatory-compliant blockchain community supplied by Avalanche. The technical feasibility and repair applicability are being verified with out precise buyer info or fund motion.
NH Nonghyup Financial institution’s digital innovation case was launched on the Perception Discussion board, an official occasion of the 2025 Singapore Fintech Competition, Asia’s largest fintech occasion, and obtained consideration from the worldwide monetary trade.
The financial institution plans to evaluate growth plans for home and worldwide fee and refund companies using stablecoins in accordance with the institutionalization course of monetary authorities sooner or later.
Govt vice chairman Choi Un-jae mentioned, “The stablecoin-based refund mannequin is an instance exhibiting that blockchain can improve buyer comfort and strengthen nationwide competitiveness,” including “We are going to lead the digital transformation of Korea’s tourism economic system via cross-border fee and settlement effectivity.”
