Hyundai Motor Group said on the 9th that ahead of the Chuseok holiday it will pay 2.2562 trillion won in supply payments to partners 23 days earlier than the original due date. It will also deliver goods to vulnerable groups and support traditional markets and local farms.
Major group affiliates will participate in the early payment of supply payments, including Hyundai Motor(005380), Kia(000270), Hyundai Mobis(012330), Hyundai Engineering & Construction(000720), Hyundai Steel(004020), Hyundai Glovis(086280), Hyundai Transys, Hyundai WIA(011210), Hyundai AutoEver(307950), Hyundai Rotem(064350), Hyundai Engineering, and Hyundai Kefico.
The purpose is to help stabilize management by easing partners' funding burdens as Chuseok approaches, when various wages such as employee bonuses and payments for raw and subsidiary materials concentrate, by paying early to 6,000 partner companies that transact parts and raw material consumables.
Hyundai Motor Group also recommended that first-tier partners pay supply payments early to second- and third-tier partners. The aim is to encourage a virtuous cycle so all partners can reduce uncertainty in financial management and receive the tangible benefits of early payment.
Hyundai Motor Group has paid supply payments in advance before Lunar New Year and Chuseok every year to ease partners' cash shortages, and it also paid early 2.0228 trillion won for Chuseok last year and 2.0768 trillion won for Lunar New Year on the — respectively.
Employees of Hyundai Motor Group will also carry out various win-win activities. Centered on business sites across the country, they will deliver needed goods and meals to vulnerable groups, and plan to engage in employee volunteer work and support for traditional markets and local farms.
Employees of Hyundai Motor, Kia, and Hyundai Mobis will deliver donations and needed goods to partner institutions and vulnerable groups, and carry out activities such as employee volunteer work at welfare facilities.
Hyundai Motor's Ulsan plant, in cooperation with Ulsan City, will work to revitalize traditional markets by holding a shopping event at Hoge Market following the launch of the "win-win market project," which links corporations and traditional markets.
Hyundai Steel, Hyundai Engineering & Construction, Hyundai Rotem, Hyundai Transys, and Hyundai Glovis will carry out activities such as providing holiday gifts and meal support, serving meals, and supplying groceries for low-income families and seniors, among other underserved neighbors.
Hyundai AutoEver will purchase apples, tangerines, and pears with reduced marketability from farms, process them into more than about 40,000 bags of fruit chips, and deliver them to vulnerable groups, and Hyundai WIA will open the Ieum Market, connecting farms in Changwon, South Gyeongsang, with employees through the agricultural and fishing village win-win fund.
A Hyundai Motor Group official said, "To mark the Chuseok holiday, when funding demand concentrates, we plan to pay partners' supply payments early and to engage in employee volunteer work and support for traditional markets and local farms," adding, "We will continue to strive to create a win-win ecosystem where everyone can grow by developing together and sharing value with partners and local communities."