Hyundai Motor Group will move to make large-scale early payments of supply payments to ease the financial burden on suppliers ahead of the Chuseok holiday.
Hyundai Motor Group said on the 22nd that it plans to advance payment of 2 trillion 22.8 billion won in supply payments by up to 20 days from the originally scheduled payment dates to help stabilize management and inject vitality into suppliers ahead of Chuseok.
This early payment of supply payments targets about 6,000 suppliers that transact parts, raw materials and consumables with major group companies belonging to Hyundai Motor Group, including Hyundai Motor · Kia · Hyundai Mobis · Hyundai E&C · Hyundai Steel · Hyundai GLOVIS · Hyundai Transys · HYUNDAI WIA · Hyundai AutoEver. This early payment of supply payments is intended to alleviate the difficulties suppliers face in cash management that are temporarily concentrated during the Chuseok holiday period, such as various wages including employee bonuses and payments for raw and subsidiary materials.
Hyundai Motor Group said it will encourage primary suppliers to also make early payments of supply payments to secondary and tertiary suppliers to actively induce a virtuous cycle. The intention is to resolve financial management uncertainties and raise the practical effects of early payments by supporting stable operations.
Hyundai Motor Group has made advance payments of supply payments before the Lunar New Year and Chuseok holidays every year to help ease suppliers' cash shortages, and it made early payments of 2.3843 trillion won and 2.0446 trillion won, respectively, for last year's Chuseok and this year's Lunar New Year.
A Hyundai Motor Group official said, "With global economic uncertainty growing due to changes in the external trade environment, we decided to make early payments of suppliers' supply payments ahead of a holiday when cash demand is high," and noted, "We expect this to be of practical help to suppliers."
In addition, Hyundai Motor Group employees plan to extend warm support so that they can have a warm Chuseok holiday by delivering necessary goods and conducting meal service volunteer work for marginalized neighbors such as vulnerable groups around business sites at workplaces across the country.
Employees of Hyundai Motor · Kia · Hyundai Mobis will deliver donations and necessary goods to affiliated organizations and vulnerable groups, support revitalization of local traditional markets to boost domestic demand, carry out employee volunteer activities at welfare facilities, and clean up the surroundings of affiliated organizations. Hyundai Steel · Hyundai E&C · Hyundai Rotem will provide side dishes and meal kits to marginalized neighbors such as low-income seniors, as well as meal services, meal service volunteering and support for ingredients for free cafeterias. HYUNDAI WIA will operate the "Ieum Market" at its Changwon headquarters to connect local farms and consumers, and plans to sponsor high-quality agricultural products for vulnerable groups.
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