[DigitalToday reporter Ji-young Lee (이지영)] KB Kookmin Bank said on Saturday it will launch next month a corporate payment service for import and export firms using JPMorgan Kinexys' blockchain-based payment network.

The service was 추진됐다 based on a memorandum of understanding the two sides signed on a blockchain remittance service for cross-border payment innovation.

It is the first time a South Korean financial company has used JPMorgan Kinexys' payment network for a payment service aimed at import and export firms.

JPMorgan Kinexys is JPMorgan's blockchain business unit and operates an institution-only blockchain payment infrastructure. Cumulative transaction volume has surpassed $4 trillion to date, and average daily transaction volume is $7 billion.

It supports remittances and foreign-exchange payments linked to the existing SWIFT payment network. It also provides a programmable payment function that can automate international payments and fund transfers 24 hours a day, year-round.

KB Kookmin Bank said it expects import-export corporate customers will be able to speed up overseas payments while keeping their existing work environment.

The service is expected to be available at KB Kookmin Bank's domestic branches and its Singapore branch. Remittance destination countries total 10, including South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the United Arab Emirates, Bahrain and South Africa. It plans to support U.S. dollar remittances first.

Once introduced, South Korean import-export firms will be able to remit U.S. dollar payments to overseas financial companies and global companies through the JPMorgan Kinexys payment network.

The bank said it expects the service will shorten settlement times, particularly in transactions with countries such as the United States and the Middle East that have different time zones and business days. It said this can improve exporters' efficiency in collecting trade payments and managing funds.

A KB Kookmin Bank official said, "It is meaningful in that it connects global digital payment infrastructure with domestic corporate finance services." The official added, "We will expand related financial services in response to changes in the global payment environment."