Hana Financial, POSCO, and Upbit operator Dunamu sign deal to pilot blockchain payments

South Korea’s Hana Financial Group, POSCO International, and Dunamu have signed a trilateral agreement to deploy a blockchain-based remittance system, with real trade transactions set to begin through POSCO International.

According to a Wednesday announcement from the companies, the agreement formalizes a move from testing to live deployment, allowing POSCO International to process actual cross-border fund flows using the new system. 

The signing took place on Tuesday at Hana Financial Group’s headquarters in Seoul, following a proof-of-concept completed earlier this year by Hana and Dunamu.

Results from that pilot, as disclosed by the firms, showed that blockchain infrastructure could reduce both settlement time and transaction costs when compared with the traditional SWIFT framework, where payment instructions and fund transfers occur in separate stages.

By combining these steps into a single process, the new system is designed to handle remittances in real time.

GIWA Chain moves into live transaction phase

Under the agreement, POSCO International’s trading arm will apply the system to real commercial transactions, while Hana Financial Group will oversee remittance processing, foreign exchange, and settlement operations. Dunamu, the operator of Upbit, will provide the blockchain infrastructure through its proprietary GIWA Chain and maintain transaction records.

“We have established a foundation for mid-to-long-term partnerships with leading domestic companies in the fields of digital finance and digital assets,” POSCO International President Lee Gye-in said.

The companies plan to finalize a working model for real-time blockchain remittances before the end of the year, based on outcomes from the live testing phase.

POSCO expands digital finance activity as Dunamu navigates regulatory pressure

Recent developments place the agreement within a wider push by POSCO International into blockchain-based finance. The company issued foreign currency digital bonds worth about 140 billion won, roughly $95 million, in partnership with HSBC, and earlier introduced a blockchain payment system with JPMorgan.

Dunamu’s participation comes as the firm continues to face regulatory scrutiny tied to its planned stock swap with Naver Financial. 

According to filings with South Korea’s Financial Supervisory Service, the transaction timeline has been delayed due to pending approvals related to major shareholding changes and business combination reviews. A separate corrective order from the Financial Supervisory Service, reported by local outlet Money Today, cited omissions in disclosures concerning future restructuring plans and investment-related risks.

Regulatory uncertainty tied to South Korea’s proposed Digital Asset Basic Act has also introduced additional variables for the deal, with provisions under discussion potentially affecting ownership limits for crypto exchanges and the structure of the merger. 

Dunamu CEO Oh Kyoung-suk told shareholders, as reported in prior coverage, that proposed caps on major shareholders could impact the company’s ownership model, although the firm intends to proceed with the transaction as planned.