Chairman Jeong Ji-seon's Order... Hyundai Department Store Provides 3 Billion KRW 'COVID-19 Support Fund' to 3,000 Brand Managers

[Asia Economy Reporter Seungjin Lee] Hyundai Department Store will provide 1 million KRW each, totaling 3 billion KRW, to more than 3,000 small and medium-sized enterprise (SME) brand store managers who are struggling due to the spread of the novel coronavirus infection (COVID-19).

On the 15th, Hyundai Department Store announced that it will pay a 'COVID-19 Overcoming Support Fund' for two months, March and April, to SME store managers who are facing difficulties due to decreased sales caused by the COVID-19 impact.

The support targets SME clothing, accessories, and living brand store managers located in all 21 Hyundai Department Store and Hyundai Outlet branches, whose monthly income sharply declined in February and March. However, store managers of large corporation-affiliated brands or those receiving fixed monthly salaries are excluded.

Hyundai Department Store will provide 1 million KRW per manager per month, and for managers in difficult situations, up to 2 million KRW for two consecutive months. This is the first time a retailer has provided support funds to store managers whose monthly income has decreased.

Typically, SME brand store managers sign contracts with each brand's headquarters and receive a portion of the sales generated in the department store as a commission from the brand headquarters. Since the managers bear all costs related to store operations, such as sales staff salaries, delivery, and repair fees, their personal income decreases directly when sales decline, as recently experienced.

The 'COVID-19 Overcoming Support Fund' for SME brand store managers was proposed directly by Chung Eui-sun, Chairman of Hyundai Department Store Group.

At a recent executive meeting related to COVID-19, Chairman Chung said, "Although we are concerned about short-term deficits due to the COVID-19 impact, the situation of our partners, including cooperative companies and store managers, is more serious," and added, "Prepare practical support measures for them."

Hyundai Department Store also decided to advance payment of delivery fees totaling 160 billion KRW monthly for five months from April to August to about 2,000 small and medium cooperative companies. Payments, previously made on the 30th of each month, will be moved forward by 20 days to the 10th of each month.

Earlier, Hyundai Department Store urgently established a 50 billion KRW 'Win-Win Cooperation Fund' to support the management stability of cooperative companies struggling due to COVID-19, providing interest-free loans. Each company can receive up to 100 million KRW, and about 900 cooperative companies are expected to benefit.

Additionally, Hyundai Department Store Group donated 1 billion KRW in emergency support funds to the Community Chest of Korea to prevent the spread of infection and facilitate rapid recovery in the Daegu area, which was designated as a special management zone due to COVID-19 damage.

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