Use of Sangsaeng Fund Increases Sixfold... CU Supports with 6 Billion Won to Overcome COVID-19

[Asia Economy Reporter Seungjin Lee] CU announced on the 16th that it has executed support worth approximately 6 billion KRW over the past two weeks since it introduced emergency support measures last month for franchise stores and small-to-medium partner companies affected by the novel coronavirus infection (COVID-19).

The usage of the CU Win-Win Cooperation Fund, which was established as living stabilization funds for franchise owners, has increased sixfold compared to the previous year. So far, about 3 billion KRW in financial support has been provided through NongHyup Bank, Woori Bank, and Industrial Bank of Korea. CU franchise owners receive a 2% interest rate reduction benefit.

For stores visited by confirmed COVID-19 cases, private professional disinfection is conducted immediately, and the head office covers all related costs. For stores that are temporarily closed, separate from existing support, 100% of the product disposal costs during the closure period are covered for ready-to-eat meals such as lunch boxes.

In particular, this month, a special budget for sales activation support has been allocated for franchise stores in the Daegu and Gyeongbuk regions. Prioritizing franchise store safety, hygiene products were already distributed to all stores nationwide last month, and additional hygiene products will be delivered to the affected regions while monitoring the situation.

Additionally, to help franchise owners utilize various government support measures related to COVID-19, CU has produced CU TV videos introducing relevant systems and is providing free CU labor and tax consultation services to help them receive support such as tax benefits, living support funds, and paid leave allowances.

Early payment of product transaction and logistics settlement funds to support the management of small-to-medium partner companies has been requested by a total of 18 companies so far, with approximately 2 billion KRW advanced.

CU is also conducting the nationwide ‘National COVID-19 Overcoming Campaign’ at about 14,000 stores to help customers save money and improve franchise store profits by offering a ‘Buy 1 Get 1 Free’ event on daily necessities.

For over 80 key food items such as porridge, rice bowls, instant rice, canned food, and cup noodles, a 2+1 event is applied, and for about 30 daily necessities including toothbrushes, toothpaste, shampoo, and razors, a 50% discount and a 1+1 event offering the same benefit are being held.

To stabilize livelihoods in the Yeongnam region including Daegu, a separate +1 event and up to 42% price discount event are being conducted on a total of 52 products in categories such as bottled water, processed milk, refrigerated ready meals, mass-produced bread, and detergents.

Seokimun, Head of the Win-Win Cooperation Office at BGF Retail, said, “Due to the impact of COVID-19, the regional economy is shrinking, so we are actively implementing comprehensive support measures at the franchise headquarters level. We will continue to communicate with franchise owners and work together to wisely overcome the current difficulties.”

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