OTOKI said on the 10th that it will pay about 13.8 billion won in subcontracting fees early ahead of the Lunar New Year holiday.
The early payment of subcontracting fees is intended to ease funding shortages and stabilize management for subcontractors (partners) before and after the holiday. The recipients are 36 companies, including OEM (original equipment manufacturer) firms, raw material suppliers, and packaging companies.
OTOKI plans to pay the subcontracting fees in full in cash about 50 days earlier than the original payment date.
OTOKI has provided support in various ways for mutual growth and co-prosperity with its partners. Every holiday, it pays partners' settlement fees early in cash and supports low-interest loans by creating a co-growth fund for partners and distributors. In addition, to strengthen partners' quality capabilities and ESG (environmental, social and governance) competencies, it is conducting industrial safety prevention activities as well as ESG consulting through ESG diagnostics and by reinforcing indicators in the environmental field.
An OTOKI official said, "With the ongoing economic downturn, high exchange rates, and high interest rates, we decided to pay subcontracting fees early for this year's Lunar New Year as well to provide practical help to small and midsize firms facing funding difficulties," adding, "We will continue to work for mutual growth with small partner companies going forward."