Hyundai Department Store Group said on the 6th it will make early payments of 273.8 billion won in settlement funds to small and midsize partner companies ahead of the Chuseok holiday.
The move aims to ease management burdens for small and midsize partners struggling with funding due to the prolonged economic downturn, high interest rates and high inflation.
Hyundai Department Store Group plans to pay settlement funds on Sept. 21, before the Chuseok holiday, up to nine days earlier than the original due date, to more than 10,000 small and midsize partners that have a transaction with group affiliates.
The targets include more than 3,000 that have a transaction with Hyundai Department Store and more than 7,000 that have a transaction with 15 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.
The total number of partners eligible for early payment is more than 10,000, up by about 1,000 from more than 9,000 during the Chuseok holiday last year.
Hyundai Department Store Group also runs support programs to help small and midsize partners manage their funds. Hyundai Department Store has operated an annual 6 billion won interest-free loan program for small and midsize partners since 2014. Hyundai Home Shopping has provided funds free of charge for small and midsize companies' product and technology development since 2013.
An official at Hyundai Department Store Group said, "We decided to pay settlement funds early for partners that are expected to face difficulties securing funds as demand for various operating funds, such as employee bonuses, increases ahead of Chuseok," adding, "We will continue to prepare various support programs so that our long-standing small and midsize partners can grow together with us."