POSCO to Advance Payment of 300 Billion KRW to Partner Companies Ahead of Lunar New Year

Reducing Holiday Fund Burden for Suppliers, Partners, and Construction Companies
Payment Frequency Changed from Twice Weekly to Daily for 5 Days from January 17 to January 23

[Asia Economy Reporter Hwang Yoon-joo] POSCO will advance payment of 300 billion KRW to its business partners ahead of the upcoming traditional Lunar New Year holiday.

POSCO will make daily payments to its business partners, including equipment material and raw material suppliers as well as construction participants, from the 17th to the 23rd for five days, instead of the usual twice-weekly payments, in preparation for the Lunar New Year holiday. Additionally, the cooperation work fees usually paid at the beginning of each month to partner companies will also be advanced and paid daily during this period to help business partners manage their funds smoothly.

Every year, besides early payments to business partners during the Lunar New Year and Chuseok holidays, POSCO has been paying the full amount of delivery payments in cash to small and medium-sized enterprises since 2004, and expanded this to medium-sized enterprises starting in 2017.

Since 2017, POSCO has also been operating a 50 billion KRW 'Cash Payment Support Fund' that provides interest-free loans from first-tier partners to second-tier partners for cash payments.

Meanwhile, POSCO became the first private company last year to introduce subcontract win-win payments in construction contracts, directly paying subcontract fees to second-tier partners, and provides advance payments to suppliers of high-value materials. These efforts reflect POSCO’s ongoing commitment to corporate citizenship management philosophy for co-growth with its business partners.

This content was produced with the assistance of AI translation services.