KT Develops World's First Blockchain-Based Electronic Signature Image (ESC) Management System
Application to BC Card completed last March following a pilot service.

KT announced on the 4th that it has developed the world's first Electronic Data & Signature Capture (ESC) management system using blockchain technology and applied it to BC Card.

Blockchain is a technology that prevents data forgery and hacking by distributing and storing transaction records in blocks rather than on a centralized server. For example, if A transmits electronically signed data, financial institutions B and C, connected via the blockchain, verify the transmitted data and share the same information. Because data is verified collaboratively (P2P) and the details are recorded and shared (Chained) in this manner, data deletion and tampering can be prevented.

KT partnered with BC Card to independently develop an Electronic Signature Image (ESC) management system utilizing blockchain, which is considered a next-generation security technology.

Until now, financial institutions have faced significant challenges regarding the storage and processing of Electronic Signature Images (ESCs). Millions of ESCs are generated daily when customers use credit cards. Under the Electronic Commerce Act, financial institutions are required to retain these images for five years. Consequently, financial institutions have been collecting received ESC files on a central server and registering and managing the information in a separate database. It was necessary to continuously expand the central server and backup server, which inevitably resulted in a burden of server setup and management costs, as well as long file processing times.

Accordingly, KT has developed a technology that utilizes blockchain to store and manage Electronic Signature Images (ESCs) in a distributed manner. Furthermore, by leveraging 'automation technology,' a core technology unique to KT Blockchain, Electronic Signature Images (ESCs) can be registered in real-time on the KT Blockchain and database, thereby significantly reducing server setup costs and processing time.

As a result of piloting KT blockchain technology at BC Card last March, the time required to process electronic signature image files could be reduced by up to 70%, and server usage capacity by up to 80%.

"Jo Su-jae, Team Leader of BC Card's Solution Development Team, stated, 'Through KT's blockchain-based Electronic Signature Image (ESC) management system, we were able to prevent original data loss and tampering through automated distributed backups, while also achieving cost savings. We plan to continuously expand the scope of application to include unstructured data, such as merchant agreements, in the future.'"

Lee Sun-woo, Senior Vice President and Head of KT’s Corporate Services Division, stated, “I am pleased that we were able to proactively solve problems that the financial sector had been struggling with through the KT blockchain-based Electronic Signature Image (ESC) management system developed in-house by the KT Convergence Technology Institute.” He added, “Going forward, we will expand the application of KT blockchain not only to corporate electronic documents such as electronic contracts and subscription systems but also to the management and distribution of various content, so that we can lead the way in creating a paperless environment for companies.”