South Korea trading giant puts receivables onchain in tokenization test with LG CNS

South Korea's largest trading company, POSCO International, has initiated a pilot project to tokenize live trade receivables on the Injective blockchain, in collaboration with LG CNS, the technology subsidiary of LG Group. The pilot uses actual trade receivables arising from real transactions between POSCO's overseas subsidiaries and their business partners, rather than simulations. By recording these receivables as tokens on a shared blockchain ledger, the companies intend to create a single, transferrable, and compliance-embedded record that can reduce reconciliation times among buyers, sellers, and banks, thereby accelerating payment settlements.

Trade receivables, which represent money owed after goods are shipped but before payment is made, currently involve separate records maintained by different parties, causing delays before cash is released. POSCO International generated $22.2 billion in revenue last year across steel, energy, and battery material segments. The proof of concept (PoC) has demonstrated the feasibility of applying blockchain and AI technologies to real trade data and processes. POSCO plans to move the initiative into full production following the pilot's completion later this year.

This development is part of a broader trend toward tokenization, which mostly has focused on funds and equities, with major asset managers bringing assets onchain to streamline processes like issuance and settlement. Trade finance is seen as another promising area where blockchain can facilitate more efficient movement of working capital and provide financing partners with a shared view of assets. South Korea has been active in corporate blockchain adoption recently, exemplified by Hyundai's use of stablecoins for treasury transfers and Circle's partnerships to explore stablecoin payment infrastructure.

LG CNS has experience with blockchain-based initiatives, including the Bank of Korea's central bank digital currency pilot and operating tokenization platforms for financial firms like KOSCOM and Mirae Asset Securities. The pilot with POSCO on the Injective blockchain extends South Korea’s growing application of blockchain technology into global trade finance, highlighting the nation's expanding role in this emerging sector.