LS ELECTRIC Advances 40 Billion KRW Early Payment to Partners... Easing COVID-19 Financial Struggles

LS ELECTRIC Cheongju Plant's 'Win-Win Growth Commitment Ceremony' held in January this year

[Photo by LS ELECTRIC]

[Asia Economy Reporter Ki-min Lee] LS ELECTRIC announced on the 21st that it has decided to make early payments of approximately 40 billion KRW to its partner companies. This early payment is intended to assist small and medium-sized partner companies experiencing financial difficulties due to the novel coronavirus disease (COVID-19).

The payments to be made early this time are for the settlement originally scheduled for the 27th of this month, which will now be paid five days earlier on the 22nd. LS ELECTRIC explained that it expects this to help partner companies secure stable operating funds and continue smoothly with raw material payments, facility investments, and component development.

An LS ELECTRIC official stated, “We are making multifaceted efforts, including strengthening communication with partner companies, to overcome the difficulties caused by COVID-19 together. In the face of these uncertain challenges, we will do our best to establish various mutual growth support programs so that LS ELECTRIC and its partner companies can achieve a ‘win-win’ relationship within a desirable framework of co-prosperity.”

Meanwhile, LS ELECTRIC was the first in the industry to introduce a mutual growth payment system in 2013, continuously supporting the stabilization of partner companies’ management by improving payment collection rates, and helping secure liquidity by promptly paying small and medium subcontractors. Additionally, since 2014, it has been advancing fund disbursements before holidays such as Lunar New Year and Chuseok, and paying the full amount in cash for payments under 100 million KRW.

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