Kolon Global announced on the 16th that it plans to continue its co-growth based on cooperative partnerships with suppliers this year.
Kolon Global has established a systemic foundation to block unfair transactions with suppliers early on, operating under the principle of cooperative partnership and co-growth.
Since 2013, it has been operating an internal review committee. Recently, it has updated the operational plan of the subcontracting dispute mediation committee to resolve supplier grievances and establish fair trade order.
Through the subcontracting unfairness blocking system, it is monitoring payment statuses such as subcontracting payments and bills in real time. In 2016, it established a post-verification procedure for the legality of subcontracting transactions and is conducting post-reviews of concluded contracts, prohibiting acts that hinder fair trade order.
It is also working to establish a culture of cooperative partnerships with suppliers. Since 1999, Kolon Global has sent letters expressing its commitment to integrity management to cooperative companies every year and has produced integrity pledges for distribution to all sites. Since 2012, it has established a welfare fund system for suppliers, supporting education and medical expenses for employees of suppliers facing difficulties. Kolon Global is also organizing an excellent supplier council, holding quarterly executive meetings, and conducting various communication activities, including grievance counseling for partner companies via its website.
This year, Kolon Global plans to advance the payment of about 190 billion won in supply payments to alleviate the financial burden on suppliers ahead of the holiday season. The early payment targets are over 1,000 small and medium-sized enterprises that are transacting with Kolon Global, and the entire transaction amount will be paid in cash. In light of rising raw material prices and concerns about sluggish construction activity, Kolon Global aims to enhance suppliers' cash liquidity through early payment.
A Kolon Global official said, "We hope that early payment of supply fees for the Lunar New Year will help alleviate the financial burden on our suppliers, even if just a little," and added, "We will continue to co-grow based on cooperative partnerships with suppliers despite challenges like the construction market downturn, high interest rates, and high exchange rates."
Kolon Global successfully improved its financial structure and liquidity through the sale of the land and building of the Seocho Sporex in December last year. Reflecting the transfer price of 430.1 billion won, the company official explained that the liability ratio and other financial conditions are expected to improve in the fourth quarter of last year.