LG Household & Health Care Provides 83 Billion KRW Financial Support to Partners Facing Funding Difficulties

In December last year, executives of LG Household & Health Care and representatives of partner companies pledged mutual cooperation at the 'Partner Company CEO Academy' held at the Mayfield Hotel in Gangseo-gu, Seoul.

[Asia Economy Reporter Yujin Cho] LG Household & Health Care (CEO Cha Seok-yong) is providing financial support totaling 83 billion KRW to partner companies facing financial difficulties due to the spread of the novel coronavirus infection (COVID-19).

LG Household & Health Care has decided to advance the payment of goods and service fees, which were previously paid three times a month, for the entire month of April. This applies to about 500 partner companies that have subcontracting transactions with LG Household & Health Care, with an average monthly transaction amount of 73 billion KRW.

Accordingly, partner companies, which used to receive payments in cash three times every 10 days each month, will now receive payments 3 to 5 days earlier than the normal payment date, allowing them to immediately use the funds to settle raw material costs, labor costs, and more.

Additionally, LG Household & Health Care will expedite the execution of a 10 billion KRW Win-Win Cooperation Fund. The Win-Win Cooperation Fund is a program that loans operating funds to partner companies using deposits linked with banks as resources.

LG Household & Health Care has established and operates a total of 41 billion KRW, and each company can receive up to 1.5 billion KRW in financial support. LG Household & Health Care plans to relax screening criteria such as transaction scale and fund usage purpose and simplify payment procedures so that partner companies can urgently utilize the Win-Win Cooperation Fund.

A representative from LG Household & Health Care said, “The win-win financial support will help improve the cash flow of partner companies that urgently need funds,” adding, “We will strive to overcome difficult and unexpected environments like the COVID-19 infection through a highly trustworthy cooperative relationship with our partner companies.”

Earlier, LG Household & Health Care supported 50% of the March rent for about 500 cosmetics franchise stores such as The Face Shop and Nature Collection, and decided to support about 800 million KRW in labor costs for employees of direct sales cosmetics agencies, daily necessities agencies, and beverage agencies.

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