Lotte Construction Strengthens Win-Win Cooperation with Partners Including Increase of Shared Growth Fund

Lotte Construction has significantly increased the amount of its financial support program. On the right is Eunbyung Park, Head of Outsourced Purchasing Division at Lotte Construction.

[Asia Economy Reporter Donghyun Choi] Lotte Construction announced on the 7th that it has significantly increased the amounts of its financial support programs for partner companies, including direct loans and the Win-Win Growth Fund.

The increase in this financial support program was made to provide practical assistance to partner companies facing liquidity difficulties due to the spread of the novel coronavirus disease (COVID-19).

The direct loan program operates interest-free loans to support partner companies with short-term operating funds so they can discover new business opportunities. Lotte Construction increased the direct loan amount from the previous 5 billion KRW to 10 billion KRW and extended the loan period for partner companies to one year. Additionally, reflecting the difficulties faced by partner companies using the loans, Lotte Construction decided to bear the cost of issuing payment guarantees, which was previously borne by the partner companies when using the direct loans.

The Win-Win Growth Fund is a mutual growth fund established through deposits at IBK Industrial Bank of Korea. Lotte Construction lends the deposited funds to partner companies and offers interest rate reductions on those loans. Lotte Construction increased the deposit amount from the previous 54 billion KRW to 57 billion KRW and supports partner companies with loan interest rate reductions ranging from 0.65 to 2.05 percentage points. In addition to the interest reduction benefits, partner companies that create jobs receive hiring congratulatory bonuses (300,000 KRW per employee, 500,000 KRW per company).

Meanwhile, since February last year, Lotte Construction has been paying subcontracting fees to external partner companies in cash. At the end of last year, it also helped partner companies secure liquidity by prepaying subcontracting fees (approximately 55.1 billion KRW) for partner companies whose corporate purchase cards expired in 2021, enabling them to pay wages and material costs at year-end.

A Lotte Construction official said, “Since 2011, we have been running financial support programs for partner companies and have continuously strived to meet their needs. We hope this decision will help partner companies struggling with liquidity due to COVID-19. We will continue to work as a corporate citizen that grows together with our partner companies through mutual cooperation.”

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