South Korea’s blockchain association intends to convince the authorities of the city of Gwangju in the necessity of creating a specialized "Crypto valley" on its territory.
According to the Korea Blockchain Enterprise Promotion Association (KBEPA), the transformation of the sixth largest city in South Korea to cryptocurrency hub will help to create many new jobs. To implement this plan, the blockchain organization established in July of this year in cooperation with Universal Group, intends to conduct negotiations with the mayor of Gwangju, Lee Yong-Sub and other city officials.
Representatives KBEPA said:
"We are going to attend a formal meeting with the mayor to provide recommendations on updating and transforming Gwangju into a special cryptocurrency hub that will be managed by the state. We also plan to meet with the Chairman of the city Council, Kim Dong-Chan, to enlist his support."
According to the blockchain Association, the South Korean government focuses on the manufacturing sector, at the same time ignoring "the rise of the fourth industrial revolution". The transformation of Gwangju into a Crypto valley, in turn, will create about one million new jobs.
The chief executive of Universal Group, Kim In-Ki, said:
"Estonia and Malta were the first countries that saw opportunities in the fourth industrial revolution. They successfully cooperate with global blockchain corporations, which are investing huge sums in their cities, thereby increasing the number of jobs. Our government is trying to create new jobs at the expense of the automotive and shipbuilding industries, in every way ignoring the rise of the fourth industrial revolution".
In addition, KBEPA also criticized the attitude of the South Korean government in relation to cryptocurrency and blockchain-companies. According to the Association, the existing regulations were forcing some domestic firms to open exchanges abroad.
For example, the government excluded the cryptocurrency and blockchain startups from the category of venture capital firms, depriving them of tax breaks and other bonuses. From now on cryptocurrency and blockchain startups pay taxes in full, not 25%. In addition, the size of corporate and income taxes levied on of the largest cryptocurrency exchanges BitHumb and Upbit, doubled.