POSCO Trials Blockchain-Based Trade Receivables with LG CNS

POSCO Trials Blockchain-Based Trade Receivables with LG CNS

POSCO International is currently testing a blockchain-based system for managing trade receivables, collaborating with LG CNS and Injective. This initiative aims to create a shared ledger that streamlines the issuance, transfer, and settlement of receivables from actual trade transactions, as opposed to using simulated invoices.

Testing Real Trade Receivables

The trial involves receivables linked to real commercial activities between POSCO’s international subsidiaries and their commercial partners. This system will allow authorized participants to view transaction statuses and ownership histories on a single ledger, reducing the redundancy often seen in invoice management and compliance checks.

Blockchain Infrastructure and Compliance

The experiment is built on Injective, a layer-1 blockchain designed for financial applications. The project aims not only to improve processing efficiency but also to enhance compliance through tokenization, turning financial claims into traceable digital records. Despite its innovative intent, the project maintains the necessity for existing legal agreements and local trade laws.

Potential Impact on Trade Finance

With a reported sales figure of 32.37 trillion won in 2025, POSCO International is well positioned to explore this technology’s potential to improve traditional finance mechanisms. Insights from the pilot program so far indicate that integrating blockchain could facilitate faster processing times, although specific metrics related to costs and efficiency remain undisclosed.

Future Steps After Pilot Testing

Following the completion of the testing stage, POSCO is expected to evaluate the technology’s viability for broader production applications later this year. Should the testing prove successful, the company may implement blockchain solutions across additional operations, adding depth to its strategy in enhancing trade finance systems.

Industry Context

This initiative follows a series of corporate blockchain trials in South Korea, reflecting a broader trend in leveraging blockchain technology across various sectors. Other notable projects include Hyundai Motor’s blockchain implementation for treasury payments. As more companies explore these solutions, POSCO’s endeavor distinguishes itself by digitizing business claims, signaling a potential shift in how trade finance could evolve.