Samsung will make early payments of 730 billion won for goods to small and midsize partner companies ahead of the Lunar New Year holiday. It will also run online marketplaces by affiliate to sell regional specialty products, joining efforts to boost domestic demand.
Samsung said on the 9th it will pay 730 billion won in goods payments to partner companies before the Lunar New Year break, moving up the schedule by as much as 18 days to ease their funding burdens.
Twelve affiliates will take part, including Samsung Electronics, Samsung C&T, Samsung Biologics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung Bioepis, Samsung Heavy Industries, Samsung E&A, Cheil Worldwide and S-1.
Since 2011, Samsung's key affiliates, including Samsung Electronics, have increased the payment cycle for goods from twice a month to three to four times a month to support smooth cash management for partner companies.
Seventeen affiliates, including Samsung Electronics, Samsung C&T, Samsung Biologics and Samsung Life Insurance, will also operate an "online marketplace for Lunar New Year" for employees.
The online marketplaces will sell regional specialty goods such as agricultural, livestock and fisheries products from across the country, items from local farms, and products from smart factories supported by Samsung Electronics.
In particular, this year 53 small and midsize enterprises that received Samsung Electronics' "smart factory build-out support" will participate, showcasing 67 products including agricultural, livestock and fisheries goods, fruit and processed foods.
Samsung affiliates plan to continue the online marketplaces through mid-month on internal bulletin boards, local government shopping malls and small business direct-trade malls. To broaden employee participation, they also added offline marketplaces at some business sites.
Since 2011, Samsung has run direct-trade and online marketplaces every holiday season, contributing to revitalizing regional economies and expanding sales channels and revenue for small and midsize companies. During Lunar New Year and Chuseok last year, employees purchased a total of 3.5 billion won in goods through the online marketplaces.