Business Groups to Pay KRW 9.6 Trillion to Suppliers Before Chuseok, Easing Financial Burdens

[Financial News] Major business groups have decided to advance approximately KRW 9.6 trillion in payments owed to suppliers ahead of the Chuseok holiday. By paying suppliers’ wages and raw-material costs in advance, the groups are expected to help suppliers meet short-term funding needs. As support spreads to second- and third-tier suppliers, it is also expected to improve cash flow throughout the supply chain.
The Federation of Korean Industries (FKI) and the FKI Small and Medium Business Cooperation Center said on the 16th that a survey of 20 major groups, titled the “2026 Survey on the Early Payment of Subcontracting and Supplier Payments Before Chuseok,” found that all 20 groups plan to advance payments to suppliers. Some groups are making payments up to 23 days early.
Major groups are also operating tailored support programs to promote suppliers’ financial stability and employee welfare.
LG, Lotte Group, POSCO, HD Hyundai, GS Group, KT, Doosan Group, and Hyundai Department Store are using shared-growth payment systems, shared-growth funds, and mutual-cooperation financing to reduce suppliers’ financial costs and strengthen their liquidity.
SK Group, Hyundai Motor Company, LG, HD Hyundai, and Hyosung Group are strengthening shared-growth cooperation by supporting smooth payments among first-, second-, and third-tier suppliers and encouraging early payments to second- and third-tier suppliers.
Practical welfare benefits will also be provided to ease the holiday-related burden on suppliers’ employees.
SK Group, Hanwha Group, Lotte Group, GS Group, Shinsegae, Doosan Group, NAVER, and Harim are providing Onnuri gift certificates, holiday gift sets, and other gift certificates to suppliers’ employees and franchise owners. Some groups are also offering bonuses or travel allowances to boost suppliers’ employees’ morale during the holiday.
Companies are also actively carrying out social-contribution activities to revitalize local economies weakened by the holiday season and support marginalized groups.
Samsung Group is operating a holiday market selling products from local farms and small and medium-sized businesses. Hyundai Motor Company is supporting a direct farm-to-consumer market linked to traditional markets, while POSCO is promoting a prepaid purchasing campaign at nearby traditional markets to stimulate spending in neighborhood businesses. Hanwha Group is helping local small and medium-sized food and agricultural businesses expand their online and offline sales channels, promoting shared growth between the local economy and small businesses. GS Group is also carrying out support projects linked to local specialties.
Support for vulnerable groups has also become more diverse.
Hanwha Group is providing tailored practical AI education for older residents in local communities. Lotte Group is offering training on online grocery shopping and the use of self-service terminals (kiosks) for people facing the digital divide. These efforts go beyond simply distributing goods and are expanding into digital-sharing initiatives that help establish a foundation for practical self-reliance.
SK Group, Hyundai Motor Company, LG, Hanwha Group, Lotte Group, POSCO, HD Hyundai, GS Group, Hanjin, LS Group, and CJ Group plan to visit welfare facilities and local child centers, deliver holiday necessities and donated goods, and conduct employee volunteer activities.
Chu Gwang-ho, head of the FKI Small and Medium Business Cooperation Center, said, "This year, support has evolved from simply providing goods into a multifaceted approach encompassing low-interest financial assistance, welfare benefits, expanded sales channels, and stronger digital capabilities." He added, "We hope these diverse support efforts will spread not only to second- and third-tier suppliers but also throughout local communities, serving as a catalyst for bringing warmth to the weakened economy affecting people’s livelihoods."

[email protected] Park So-hyun Reporter