POSCO Pioneers Blockchain Trade Finance in South Korea

POSCO International, South Korea's largest trading company, is pioneering the use of blockchain in trade finance by tokenizing its trade receivables. In a pilot project with LG CNS, POSCO is placing real trade receivables on the Injective INJ$4.9351 blockchain, aiming to speed up payments between its global subsidiaries.

The company generated $22.2 billion in revenue last year from businesses spanning steel, energy, and battery materials. Trade receivables represent money owed to a company after goods have been shipped but before payment is received. By placing these claims on a shared blockchain ledger, POSCO hopes to create a single record that can be transferred and settled while carrying compliance rules.

The pilot uses real trade data from POSCO's overseas operations and their counterparties, rather than simulated transactions. LG CNS has previously worked on the Bank of Korea's central bank digital currency pilot and operates tokenization platforms for KOSCOM and Mirae Asset Securities.