SK Hynix Shortens Payment Cycle for Small and Medium Suppliers "Expected to Help Cash Flow"

[Asia Economy Reporter Kim Hyewon] SK Hynix is expanding its win-win program to support small and medium-sized partner companies struggling due to the novel coronavirus infection (COVID-19).

SK Hynix announced on the 19th that starting next month, it will increase the payment frequency for small and medium-sized partner companies’ delivery payments, which amount to 600 billion KRW per month, from three times a month to four times a month.

SK Hynix expects that shortening the payment cycle from 10 days to 7 days will help not only the primary partners but also the secondary and tertiary partners with their cash flow. This payment policy will be maintained even after the COVID-19 situation ends.

Additionally, SK Hynix decided to prioritize support from the available 130 billion KRW in the partner win-win fund it operates for partners affected by COVID-19. SK Hynix operates a total of 370 billion KRW in win-win funds to strengthen the competitiveness of small and medium-sized partners, including a 300 billion KRW low-interest mutual growth fund and a 70 billion KRW interest-free delivery payment support fund, with 130 billion KRW currently remaining.

SK Hynix will continue routine support such as providing masks free of charge to partner companies and revitalizing the local economy. Since March, SK Hynix has been providing masks free of charge to partners including in-house contractors and plans to supply a total of 300,000 masks by next month.

Kim Kwangwook, SK Hynix’s purchasing manager, said, "As COVID-19 prolongs, the difficulties of small and medium-sized partners are increasing. We will continue to take the lead in supporting small and medium-sized partners so that the domestic semiconductor ecosystem can be maintained."

SK Hynix is also participating in revitalizing the local economy, which has been depressed due to COVID-19. Last month, it purchased support kits worth 500 million KRW with local currency in Icheon and Cheongju, where its business sites are located, and provided them to 10,000 COVID-19 relief personnel. At the Bundang office, it purchased local currency worth 100 million KRW and has been running a campaign encouraging the use of restaurants around the office for eight weeks since mid-February. Furthermore, it purchased 2.5 billion KRW worth of local currency in Icheon and Cheongju to be used for community support, partner win-win efforts, and social contribution activities.

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