[Hankyung] Patent application for GBC Korea’s ‘M&A platform utilizing blockchain’

GBC KOREA made an announcement on the 27th that it applied for patents regarding M&A platform that uses blockchain technology in South Korea

The official name of the patent is ‘System for the provision of blockchain-based M&A service and its operation method’. It is the world’s first M&A platform based on blockchain and applied for patent through the Pacific appraisal, the company explained.

GBC KOREA has secured a new source technology for platform that can implement traditional M&A processes based on blockchain and has started to establish a system that includes user terminals along with Techcoins in Silicon Valley(USA). By introducing blockchain to M&A, which was difficult for individual investors to access, It focused on making M&A transactions transparent and secure at low cost.

It is not centered on intermediaries such as investment banks and private equity funds, but it is designed as M&A platform centered on participants such as buyers and sellers. Investors are able to choose a directly growing company, and all information about the transaction process is shared with participants in real time. M&A transactions are carried out quickly and transparently according to standardization process from start of M&A to end of process without having to go through complicated adjustment process by intermediary organizations. 

This means that the transaction costs of 20 to 30 percent, which were taken by brokerages such as start-up funds, operation, and performance compensation, have been reduced, thus returning to the returns of investors. The structure of fund recovery will also become clear. After a certain amount of time passes after participating in M&A transactions, you can always withdraw money from your cryptocurrency after selling it at the exchange and transfer it to another M&A project. This system is thanks to digital assets of global M&A companies and the ability to make transactions within platforms through smart contracts.

GBC KOREA says, “If M&A platform based on blockchain is used, transaction risks will be reduced. “It is because investment experts go through a process of verifying whether or not listed companies in stock markets have high growth potential and put them on platforms (on-chain). After participating in M&A transactions, we have designed this technology so that business shares and investor asset values can be linked one to one.”

When trading with this platform, investors can easily participate in M&A transactions through UCX, which is a dedicated cryptocurrency. When certain M&A transactions start to be funded, investors can buy UCX and choose one of M&A deals that they want to participate in. Unlike the previous M&A deals that were traded at tens of billions of dollars, the platform allows investors to participate in small accounts.

Terrance Pak, Global C.E.O of GBC KOREA explains, “Global M&A is a highly profitable transaction, but it is difficult for the general public to access to M&A and is excluded from priorities such as expertise and size of investments.”, “We have created a platform so that anyone in the world can participate in M&A transactions and make profits based on transparent information.”

Kim Bong Goo reporter (kbk9@hankyung.com)


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