LG to Advance Payment of 1.25 Trillion KRW to Partners Ahead of Lunar New Year

[Asia Economy Reporter Kim Hyewon] LG Group announced on the 31st that it will make early payments of delivery payments totaling 1.25 trillion won to help small and medium-sized partner companies struggling with fund management due to the prolonged COVID-19 pandemic ahead of the Lunar New Year holiday.

Nine affiliates, including LG Electronics, LG Display, LG Chem, and LG Energy Solution, plan to make all payments before the Lunar New Year holiday by advancing the scheduled payment dates by 1 to 7 days, and up to 12 days at the longest.

It is expected to help alleviate the difficulties of small and medium-sized partner companies facing temporary cash demands due to raw material payments and bonus payments.

LG affiliates plan to encourage first-tier partner companies to advance delivery payments to second- and third-tier partner companies, which are in more difficult circumstances.

LG also plans to operate a financial support program worth 1 trillion won this year. This includes a win-win cooperation fund that offers interest rate reduction benefits to partner companies and interest-free direct loans by each affiliate.

Partner companies struggling due to COVID-19 will be given priority support when applying for fund loans. Support will be provided to first- to third-tier partner companies to ensure smooth progress in facility investment and parts development.

In addition, ahead of the Lunar New Year, LG affiliates will carry out activities such as providing daily necessities and purchasing local agricultural products to help local communities and neighbors struggling due to the prolonged COVID-19 pandemic, with participation from employees at business sites nationwide.

LG Display is selling local agricultural products at its Paju and Gumi business sites to help farmers who lost sales channels due to COVID-19, and the company purchases the same amount as employees buy to deliver to vulnerable groups in the region. LG Chem plans to deliver holiday gifts to nearby social welfare facilities at business sites such as Yeosu and Naju plants and provide daily necessities to vulnerable households.

LG Electronics Korea Sales Headquarters donates kimchi and daily necessities to neighbors in need, such as elderly living alone in the Seoul area, and LG HelloVision plans to deliver food and quarantine supplies for the visually impaired and vulnerable children in the region with employee participation.

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