Ahead of Chuseok Holiday... LG to Pay 980 Billion Won Early to Partners

[Financial News] LG announced on the 18th that it will pay delivery fees early to partners and engage in social contribution activities such as sharing daily necessities ahead of the Chuseok holiday. 
LG Electronics, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, LG CNS, D&O, and 8 other affiliates will pay delivery fees up to 14 days in advance to support coexistence with partners ahead of the Chuseok holiday. The total amount of delivery fees paid early is 980 billion won.
LG stated, "This early payment of delivery fees will help partners manage their funds as demand for funds such as raw material payments and employee bonuses temporarily surges ahead of the Chuseok holiday." 
LG also advanced the payment of delivery fees amounting to 1.5 trillion won to support smooth fund management for small and medium-sized partners during the last Lunar New Year holiday.
In addition to the early payment of delivery fees, LG affiliates are operating financial support programs worth about 1.2 trillion won, including mutual growth funds and direct loans, to allow partners to procure funds through interest-free or low-interest loans.
LG Electronics operates a mutual cooperation fund worth 300 billion won in total with deposits and contributions from commercial banks, providing low-interest loans to partners in need of management funds. It also provides 40 billion won annually in interest-free funds to partners who need to invest in new facilities and automation equipment, supporting the enhancement of partners' manufacturing competitiveness.
LG Innotek operates mutual growth funds, mutual cooperation funds, and financial support programs worth a total of 140 billion won, LG Chem 200 billion won, and LG CNS 47 billion won, helping partners procure funds and support the transition to a sustainable business structure.
LG is actively utilizing the mutual payment system to ensure partners can use the necessary funds in a timely manner and promote business stability. The mutual payment system guarantees cash payment on the due date and allows partners to cash out payment amounts early at a low financial cost equivalent to the credit level of large companies even before the payment date. The amount paid to first-tier partners through mutual payment by 10 LG affiliates last year accounted for 8.7% of the total domestic mutual payment amount.
According to the '2024 Second Half Subcontract Payment Terms Disclosure Inspection Results' announced by the Fair Trade Commission, LG pays 81.2% of subcontract payments within 10 days, ranking first among 88 corporate groups that disclosed subcontract payment terms in terms of the ratio of payments made within 10 days.

soup@fnnews.com Lim Subin Reporter