Hyundai Motor Group will pay more than 2 trillion won in purchase prices early to ease the financial burden on partners for the Chuseok holiday.
Hyundai Motor Group said on the 22nd that it will pay 2.0228 trillion won in purchase prices up to 20 days earlier than originally scheduled to help stabilize partners' operations.
The early payment covers about 6,000 partners that transact parts, raw materials, and consumables with major affiliates under Hyundai Motor Group, including Hyundai Motor, Kia, Hyundai Mobis, Hyundai E&C, Hyundai Steel, Hyundai GLOVIS, Hyundai Transys, HYUNDAI WIA, and Hyundai AutoEver.
Hyundai Motor Group said the early payment of purchase prices is meant to ease the difficulties of partners that must pay wages such as employee bonuses and settle raw and subsidiary material costs at once during the Chuseok holiday period. Hyundai Motor Group also plans to recommend that primary partners pay purchase prices early to secondary and tertiary partners.
Hyundai Motor Group has made advance payments of purchase prices every year before Lunar New Year and Chuseok to help partners ease cash shortages. It already paid 2.3843 trillion won ahead of last year's Chuseok and 2.0446 trillion won ahead of this year's Lunar New Year.
A Hyundai Motor Group official said, "With global economic uncertainty growing amid changes in the external trade environment, we decided to pay partners' purchase prices early ahead of a holiday with high cash demand."