Hyundai Department Store Group will pay small and midsize partner companies earlier than scheduled ahead of the Chuseok holiday. The move is intended to ease the management burden on small and midsize partners facing cash pressure from a prolonged economic slump and the impact of high interest rates and high inflation.
Hyundai Department Store Group said on the 16th that it will pay 210.7 billion won in settlement funds to more than 9,000 small and midsize partners that have transactions with group affiliates on the 1st of next month, before the Chuseok holiday, up to nine days earlier than the original payment date.
Small and midsize partners receiving early settlement this time include about 7,000 that have transactions with Hyundai Department Store, as well as about 2,000 that have transactions with 14 affiliates including Hyundai G.F Holdings, Hyundai Home Shopping, Hyundai Green Food, Hyundai LIVART, Handsome, Hyundai Everdigm, DAEWON KANG UP, Hyundai Bioland, Hyundai Futurenet, Hyundai Duty Free, Hyundai L&C, ZINUS, Hyundai Dream Tour, and Hyundai Ezwel, for a total of more than 9,000 small and midsize partner companies.
A Hyundai Department Store Group official said, "Ahead of Chuseok, we will pay settlement funds early to support partners expected to face difficulties in raising funds due to increased needs for various operating funds, including employee bonuses," and added, "We will continue to prepare a variety of support programs that enable long-standing small and midsize partners to grow together."
Meanwhile, Hyundai Department Store Group has been steadily operating support programs to help small and midsize partners manage funds smoothly.
Hyundai Department Store has operated an interest-free loan program worth 6 billion won annually for small and midsize partners since 2014, and Hyundai Home Shopping has provided funds free of charge for product or technology development to small and midsize companies since 2013.