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영어

In the event of fraud using weaknesses in the principle of independence of the letter of credit (L/C), the bank is not responsible for the authenticity, forgery, or legal effect of the presented document. In addition, if the bank deems that there is no reason to doubt the validity of the document, it shall pay for the L/C. However, even if a bank is obligated to pay a consistent presentation in accordance with the principle of independence of the L/C, if it recognizes that there has been fraud by the beneficiary in advance, it must comply with the principle of good faith to issue clients and refuse payment. This fraud rule has a problem of making banks bear the burden of proof of fraud and undermining the independence, which is an essential characteristic of the L/C. This problem is expected to be largely solved by applying the blockchain technology to L/C transactions, because the blockchain has characteristics such as stability, economy, and transparency in that it discloses information to all parties. If L/C transactions using blockchain are popularized, problems arising from the application of the fraud rule to the examination of L/C documents can be fundamentally solved. Therefore, this study attempts to find problems caused by the application of the fraud rule in the document review of L/C and solutions to problems through L/C transactions based on blockchain technology.