Enabled real-time sharing of transaction information between the headquarters and overseas subsidiaries through a shared ledger

Tokenized accounts receivable as real-world assets (RWAs)

Validated AI agent-based automation of trade operations and other key capabilities

On the 23rd, POSCO INTERNATIONAL (CEO LEE Kye-In) announced that it has completed a proof of concept (PoC) for a blockchain- and AI-based trade finance infrastructure in collaboration with LG CNS, applying the technologies in a real-world global trading environment.

POSCO INTERNATIONAL undertook this PoC to improve the efficiency of managing the growing volume of transactions and settlements with overseas subsidiaries driven by its global business expansion, while accelerating the digital transformation of its trade operations. The company demonstrated digital technologies for global trade in three key areas: ▲ real-time sharing of transaction information through a shared ledger, ▲ tokenization of accounts receivable as real-world assets (RWAs), and ▲ AI agent-based automation of trade operations.

The validation focused on assessing whether digitally connecting and automating transaction, settlement, and document review processes across global trade operations could improve operational efficiency and strengthen risk management. POSCO INTERNATIONAL provided the proof-of-concept environment based on its global trade network and real-world transaction data, while LG CNS was responsible for system architecture design and the validation of blockchain and AI technologies.

First, the two companies implemented a shared ledger system based on blockchain to enable real-time sharing of transaction information among headquarters, overseas subsidiaries, and trading partners. In the past, transaction information required repetitive verification during the contract and settlement processes as it was managed separately by country and subsidiary. Under the shared ledger-based structure, all transaction participants can access and verify the same transaction information in real time, reducing operational risks caused by information discrepancies while improving the efficiency of contractual and settlement processes.

In the area of tokenizing accounts receivable as RWAs, the company validated a framework that enables receivables generated from actual trade transactions to be issued, transferred, settled, traded, and managed as digital assets. The technical validation utilized Injective, a blockchain network specialized for the corporate finance environment.

Based on the Injective network’s architecture—which allows compliance, privacy, and regulatory response functions to be integrated into the protocol layer—the project also validated the control functions necessary for corporate finance. Specifically, the companies verified the feasibility of implementing permission-based asset management, Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, investor eligibility screening, and asset transfer restrictions, while assessing whether blockchain technology could be applied to the entire process of inter-company accounts receivable transactions.

An AI agent capable of automatically reading documents and detecting errors was applied to the review of letters of credit (LCs) and trade documents to evaluate its ability to reduce variations in review quality resulting from differences in the proficiency of personnel and to minimize human errors.

Global trade operations require a high level of expertise, as the required documents and procedures vary by country, trading partner, and contract terms. In particular, even minor errors, such as typographical mistakes in letters of credit (LCs) or omitted clauses, can result in payment delays or even payment rejections. The evaluation confirmed that utilizing the AI agent during the preliminary review stage enables the early identification of potential risks and helps reduce variations in work quality across overseas subsidiaries.

“This PoC is significant as it demonstrated the practical applicability of AI and blockchain technologies in a real-world trade environment,” said a POSCO INTERNATIONAL official. “We plan to finalize our pilot operation plans in the second half of this year, focusing on areas where the PoC confirmed meaningful improvements in operational efficiency.”

▲ POSCO INTERNATIONAL’s headquarters in Songdo.

Reduced settlement period from five days to three, improving fund management efficiency

POSCO INTERNATIONAL (CEO LEE Kye In) announced on the 23rd that it issued blockchain-based digital bonds, marking the first instance among non-financial companies in Korea.

Digital bonds are securities in which the entire process of issuance, registration, trading and settlement is carried out using blockchain technology, offering enhanced security, faster settlement and greater accessibility for global investors compared with traditional bonds.

Valued at about KRW 140 billion (approximately HKD 780 million), the digital bonds issued by POSCO INTERNATIONAL were placed privately. The global financial institution HSBC served as the sole lead manager. The issuance marks the second such case in Korea, following Mirae Asset Securities, and the first by a non-financial company.

POSCO INTERNATIONAL reduced the settlement period for conventional foreign-currency bonds from five business days to three with the introduction of digital bonds. The move is expected to improve fund management efficiency by increasing the speed of capital turnover, while further expanding investor accessibility as a globally integrated business company.

Furthermore, the company expects a reduction in procurement interest rates through the “Issuance Cost Subsidy Scheme,” which Hong Kong financial authorities are providing on a temporary basis to vitalize the digital bond market.

As a global trading company centered on energy, materials, and agro businesses, POSCO INTERNATIONAL maintains a business structure in which stable foreign currency procurement is vital. Starting with this issuance, the company plans to accelerate the digitalization of finance while proactively responding to the markets of smart contracts and security token offerings (STOs, securities that divide real financial assets based on blockchain for issuance and distribution).

Meanwhile, POSCO INTERNATIONAL and HSBC held a signing ceremony for the issuance of digital bonds on the 16th at HSBC headquarters in Jung-gu, Seoul. The event was attended by CHUNG Kyung Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and RHEE Sang-ho, CEO of HSBC Securities. Taking this issuance as an opportunity, both companies agreed to strengthen cooperation in the field of digital finance, including the introduction of blockchain and digital financial technologies, financing efficiency, and digital transformation.

“This issuance is a milestone that realizes digital transformation in the fund procurement sector following the introduction of a blockchain-based global payment system last year,” Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, remarked at the signing ceremony. “We are actively promoting a full-scale digital transformation based on our digital transformation (DX) master plan and will proactively respond to changes in the digital finance environment, such as the STO market, to further strengthen our procurement competitiveness in the global market.”