LG to Pay 600 Billion Won Early to Suppliers for Chuseok, Advancing Payments by 13 Days

[Financial News] LG announced on the 14th that it will make early payments of 600 billion won in supply payments to partner companies ahead of the Chuseok holiday to promote mutual growth.
Eight affiliates, including LG Electronics, LG Innotek, LG Chem Ltd., LG Energy Solution, LG Household & Health Care, LG Uplus Corp., LG CNS, and D&O, will pay suppliers up to 13 days ahead of the Chuseok holiday.
It is assessed that such early payments will help the financial management of partner companies, which face a temporary surge in demand for funds before the Chuseok holiday for items such as raw material payments and employee bonuses.
Seven affiliates, including LG Electronics, LG Innotek, LG Chem Ltd., LG Energy Solution, LG Household & Health Care, LG Uplus Corp., and LG CNS, are operating financial support programs such as a co-prosperity fund worth approximately 1.2 trillion won and direct loans to enable partner companies to raise funds by obtaining interest-free or low-interest loans, in addition to early payment of supply costs.
Previously, LG held the 'LG-1st, 2nd, and 3rd Tier Supplier Win-Win Agreement Signing Ceremony' with the Fair Trade Commission last July, and has been carrying out activities to strengthen win-win cooperation even with second-tier and lower-tier suppliers, such as supporting second-tier and lower-tier suppliers with more than 10% of the operating funds from the Win-Win Growth Fund and expanding the 'win-win payment trickle-down rate,' which is the highest level in the country, to more than 10%, ensuring that payments made to first-tier suppliers reach second-tier suppliers.
In addition, affiliates such as LG Display Co., Ltd., LG Chem Ltd., LG Energy Solution, LG Household & Health Care, and LG Uplus Corp. have decided to deliver daily necessities to vulnerable groups in the community and conduct volunteer activities in celebration of the holidays.

[email protected] Kim Hak-jae Reporter