POSCO Tests Blockchain-Based Trade Finance in South Korea

South Korean trading company POSCO International is testing blockchain-based trade finance in collaboration with LG CNS and Injective. The trial uses real commercial transactions between overseas subsidiaries and external counterparties, placing receivables on a shared ledger for issuance, transfer, and settlement.

The pilot project aims to reduce the time-consuming process of verifying invoices and payments across separate systems by creating a single record for buyers, sellers, and financing partners. The system can also carry conditions that control who may receive or transfer tokenized receivables.

LG CNS provides its expertise in Korean finance projects, while Injective supplies the blockchain layer used to record and move the receivables. POSCO International has already tested blockchain in corporate funding, issuing a foreign-currency digital bond using the technology last April.

The project follows other corporate blockchain trials in South Korea, with Hyundai Motor's US and Mexican operations completing a $20,000 treasury payment using USDT on Avalanche earlier this year.