"Overcoming COVID-19 Together" Hyundai Construction to Pay 100% Subcontracting Fees in Cash Within 10 Days

[Asia Economy Reporter Yuri Kim] Hyundai Engineering & Construction announced on the 10th that it will pay 100% of the construction payments in cash to about 600 subcontractors performing domestic subcontracting work. It also plans to support advance payment guarantee fees so that subcontractors can secure funds smoothly at the early stage of construction.

Hyundai Engineering & Construction stated, "We will pay subcontracting payments in cash within 10 days from the issuance date of the tax invoice to all subcontractors currently performing construction or signing contracts in the future," adding, "We expect that this expansion of liquidity support will help improve the financial condition of subcontractors who are struggling to secure funds due to the prolonged COVID-19 pandemic." They explained that this will help establish a foundation for securing funds even for the subcontractors' clients.

In September, Hyundai Engineering & Construction announced a win-win cooperation plan to expand the scale of the Shared Growth Fund to 160 billion KRW. This is the largest scale in the industry and expands opportunities for Hyundai Engineering & Construction’s subcontractors to procure funds at low interest rates. In addition, they are supporting ▲contract performance guarantee fees ▲deferment of direct loan repayments, among other measures.

A Hyundai Engineering & Construction official said, "Considering the characteristics of the construction industry, where business cannot continue without timely securing cash liquidity, we are supporting subcontractors' efforts to secure funds in various ways," and added, "Based on the industry's highest level of financial stability, we will strive to coexist and grow together with subcontractors during this difficult time due to COVID-19."

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