POSCO International Issues Blockchain-Based Digital Bond, First Non-Financial Firm in South Korea

Gate News message, April 23 — POSCO International announced on April 23 that it has issued a blockchain-based digital bond, becoming the first non-financial company in South Korea to do so. The bond was issued in private placement format with a scale of approximately 1.4 trillion KRW, with HSBC serving as the sole lead underwriter.

Digital bonds process issuance, registration, trading, and settlement entirely on blockchain technology, offering enhanced security, faster settlement times, and expanded access for global investors compared to traditional bonds. POSCO International reduced settlement time from five business days to three business days with this issuance. The company is the second digital bond issuer in South Korea after Mirae Asset Securities, and the first among non-financial enterprises.

The digital bond issuance follows POSCO International’s deployment of a blockchain-based global payment system last year. The company expects to benefit from Hong Kong financial authorities’ temporary issuance cost subsidy program designed to promote digital bonds. POSCO International and HSBC signed the digital bond agreement on April 16 in Seoul and plan to strengthen cooperation in blockchain technology, digital finance, and digital transformation, including future participation in the tokenized securities (STO) market.