POSCO International and LG CNS Complete Blockchain and AI-Based Trade Finance Technology Proof of Concept

POSCO International announced on July 27 that, together with LG CNS, it has completed the Proof of Concept (PoC) for applying blockchain and AI technologies to trade finance infrastructure in a real-world global trading environment.

POSCO International pursued this PoC to more efficiently manage the increasing volume of transactions and settlements with overseas subsidiaries accompanying the expansion of its global business, and to accelerate the digital transformation of trade operations. The company validated digital technologies applicable to global trade work across three areas: ▲sharing transaction status based on a shared ledger, ▲tokenization of accounts receivable as real-world assets (RWA), and ▲automation of trade work using AI agents.

This verification focused on assessing whether linking and automating transaction, settlement, and document review processes with digital technology in global trade could improve operational efficiency and risk management. POSCO International provided a real-world testing environment using its global trade network and actual transaction data, while LG CNS was responsible for designing the system architecture and validating blockchain and AI technologies.

First, the companies implemented a method for sharing transaction information in real time among headquarters, overseas subsidiaries, and trading partners through a blockchain-based shared ledger. Previously, transaction information was managed separately by country and subsidiary, requiring repeated checks during contract and settlement processes. With a shared ledger structure, all transaction participants can confirm the same transaction status in real time, reducing operational risks from information mismatches and improving the efficiency of contract and settlement processes.

For the tokenization of accounts receivable as real-world assets (RWA), the PoC validated a structure in which accounts receivable arising from actual trade are issued as digital assets and can be transferred, settled, traded, and managed. The technology test used Injective, a blockchain network specialized for corporate financial environments.

The PoC also validated control functions necessary for corporate finance, utilizing Injective's protocol-layer capabilities that support compliance, privacy, and regulatory response. Specifically, the PoC verified the feasibility of implementing permission-based asset management, Know Your Customer (KYC), Anti-Money Laundering (AML), investor qualification screening, and transfer restrictions, and assessed whether blockchain technology could be applied across all aspects of intercompany accounts receivable transactions.

AI agents capable of automatically reading and checking documents for errors were applied to the procedures for reviewing letters of credit (LC) and trade documents. This was to validate whether such automation could reduce variations in review quality and human errors arising from differences in staff experience.

Global trade work requires a high level of expertise, as required documents and procedures differ by country, trading partner, and contract terms. In particular, even simple errors such as typos or omitted provisions in LCs can lead to delayed or refused payments. Applying AI agents to preliminary review stages was found to help identify related risks early and reduce work quality disparities among overseas subsidiaries.

A POSCO International official stated, "This PoC is significant in that it validated the feasibility of applying AI and blockchain technology based on actual trade data and processes. We plan to formulate concrete pilot operation plans for the areas where operational efficiency was confirmed during the second half of this year."

This content was produced with the assistance of AI translation services.