LG Electronics Selected as an Excellent Company for Win-Win Payment with 1st and 2nd Tier Partners

Total Win-Win Payment Amount of 39.2877 Trillion KRW from 2015 to Last Year
"Largest Scale Among Domestic Companies"

LG Electronics announced on the 21st that it was recently selected as an "Outstanding Win-Win Payment Company" by the Foundation for Large and Small Enterprises and Agriculture-Fishery Cooperation and the Win-Win Growth Committee in recognition of its efforts to expand the win-win payment system among its partners. Kim Byung-soo, LG Electronics' Win-Win Growth Manager (second from left), Kim Soon-chul, Secretary General of the Foundation for Large and Small Enterprises and Agriculture-Fishery Cooperation (third from left), and Koo Ja-cheon, CEO of Shinsung Delta Tech (fourth from left), along with other officials, are posing for a commemorative photo at the awards ceremony.
[Photo by LG Electronics]

[Asia Economy Reporter Kim Heung-soon] LG Electronics announced on the 21st that it was recently selected as an 'Outstanding Company in Win-Win Payment' by the Foundation for Large and Small Enterprises and Agriculture, Forestry and Fisheries Cooperation and the Win-Win Growth Committee for expanding the win-win payment system among its partners.

LG Electronics was highly evaluated for actively utilizing the win-win payment system to provide practical assistance to secondary and lower-tier partners struggling with management difficulties due to COVID-19. The win-win payment system is a scheme that guarantees partners cash payment on the payment date and allows early cash conversion at low interest rates. When large corporations or public institutions separately deposit payment funds into a dedicated escrow account at a financial institution, the funds are paid to the partners on the payment date.

LG Electronics paid KRW 7.1484 trillion last year using the win-win payment method. Since introducing the win-win payment system in 2015, the total amount paid through the system until the end of last year reached KRW 39.2877 trillion. In particular, first-tier partners paid KRW 531.7 billion to secondary and lower-tier partners through the win-win payment system last year. LG Electronics explained that this is the largest scale among domestic companies.

Shinseong Delta Tech, a first-tier partner of LG Electronics, has been using the win-win payment system since 2015 to pay delivery fees to secondary partners. Last year, 76% of the delivery fees received from LG Electronics were paid to secondary partners through the win-win payment system. It is the partner with the highest win-win payment amount among those trading with LG Electronics.

LG Electronics encourages first-tier partners to participate, judging that the win-win payment system provides practical help to secondary and lower-tier partners. Through this, it expects to achieve a trickle-down effect where the win-win cooperation effect spreads to secondary and lower-tier partners.

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