iM Financial Group said on April 20 it successfully completed the country’s first proof-of-concept (PoC) project for a blockchain-based prepaid payment service, carried out with its affiliate iM Bank and Buchigo, a startup in fintech lab Pium Lab.

It said the result was the first visible outcome of the group’s hybrid strategy, implementing blockchain payments within the legal framework for prepaid electronic payment instruments under the Electronic Financial Transactions Act ahead of discussions on institutionalising stablecoins. The group described it as a case that achieved both technological innovation and compliance with current financial regulations.

The service is designed on prepaid funds linked to an iM Bank real-name account, meeting rules on real-name verification, anti-money laundering (AML) and user protection. It combines a blockchain distributed ledger with a trust-based infrastructure required by financial authorities.

The hybrid strategy centres on combining banks’ trust-based infrastructure with fintech’s technical agility, a central settlement system with a distributed ledger, and AI-based infrastructure with blockchain-based infrastructure. The group said the trial showed these three pillars operating simultaneously within current regulations.

On the consumer side, it delivers a simple payment experience that enables payment by scanning a QR code. Because prepaid funds are linked to a real-name account, top-ups, refunds and transaction history management are provided with stability comparable to existing bank transactions. While blockchain is used in the internal processing structure, users can use it in a way similar to general QR payments.

On the merchant side, a distributed ledger-based settlement structure lowered fee burdens and improved settlement speed. It was designed to reduce settlement delays compared with existing card payments and ease the burden of cash turnover. The company said it particularly expects an improvement in cash flow for local small merchants.

iM Bank and Buchigo implemented the entire process on blockchain infrastructure through the trial, from issuance and top-ups of prepaid electronic payment instruments to QR payment linkage, real-time transaction processing, merchant settlement and transaction history queries. They also confirmed performance at a commercial service level in payment stability, processing speed and merchant acceptance.

The project also aimed at effects on the local economy beyond a simple technology test. It was assessed as being able to contribute to easing cost burdens for small merchants and strengthening local financial infrastructure by improving payment fees and settlement delays at the same time.

iM Financial said it expects the trial to help it secure a reference for blockchain payment infrastructure and strengthen digital competitiveness while expanding its role in local-based finance.

The case is also assessed as a result of Pium Lab’s collaboration model. It combined the startup’s technical capabilities, the bank’s infrastructure and the group’s regulatory 대응 capabilities, achieving a level of testing that is difficult to implement alone, it said.

iM Financial Chairman Hwang Byung-woo (황병우) said, "This achievement is a pre-emptive attempt to prepare for the institutionalisation of token securities and stablecoins." He added, "Implementing a commercial-level trial within the current legal system is the way the iM hybrid strategy is executed." He added, "We will continue to expand the innovation ecosystem through collaboration with promising startups."