LG H&H said on the 15th that it will raise payments for deliveries to work with its partners to overcome the crisis sparked by the Middle East war between the United States and Iran.
LG H&H held an on-site roundtable on the delivery price indexation system on the 14th at LG Seoul Station Building in Jung-gu, Seoul. Minister Han Seong-sook of the Ministry of SMEs and Startups, LG H&H President Lee Seon-ju, and heads of partner companies attended.
Reflecting recent increases in raw material prices, the company has raised the delivery unit prices for 59 existing contracts with 15 partners by 2.56 billion won so far. Starting this month, it will sequentially review additional increases for about 16,000 contracts with 47 partners. The total increase is expected to reach up to 20 billion won within the year.
The delivery price indexation system reflects fluctuations in raw material prices in delivery unit prices to ease partners' cost burdens. LG H&H has taken part as a companion in the delivery price indexation program since 2023 and has been selected as an indexation excellence company for two consecutive years. In the Shared Growth Index evaluation by the Korea Commission for Corporate Partnership, it has received the top grade a total of nine times.
The Minister said, "The value of shared growth shown by LG H&H is a precious asset that enhances our economy's crisis resilience," and added, "I am grateful to LG H&H executives and employees who are working with partners to overcome the crisis."
President Lee said, "Although everyone is facing difficulties, thanks to our partners delivering goods without disruption, LG H&H was able to supply products to customers stably," and emphasized, "To establish a culture of shared growth and fair transactions, we will continue to seek various co-prosperity measures, including the delivery price indexation system."