Hyundai Glovis to Pay Annual 2 Trillion KRW in Cash to Partners... Strengthening Win-Win Management

[Asia Economy Reporter Dongwoo Lee] Hyundai Glovis announced on the 9th that it will pay the full amount of annual transaction payments worth 2 trillion KRW in cash to about 700 small and medium logistics partners facing economic difficulties due to the impact of COVID-19.

The payment targets are small and medium enterprises as defined by the Subcontracting Act, and the company plans to continue cash payments until the end of COVID-19. During 설 (Seol) and Chuseok, when cash flow demands temporarily concentrate, the transaction payments will be paid early before the holidays to reduce the burden on partners.

Starting this Chuseok, 120 billion KRW worth of payments will be paid early in cash. Changing the payment method from the existing promissory notes to 100% cash payments is expected to help alleviate the financial difficulties of partners. First-tier partners who receive payments in cash will also be encouraged to pay their second- and third-tier partners in cash to build consensus.

A 20 billion KRW ‘Logistics Sharing Fund’ will be established to support industrial accident prevention at logistics sites and COVID-19 recovery. The newly established Logistics Sharing Fund will be used to support partner drivers in overcoming COVID-19. Drivers who cannot operate vehicles due to COVID-19 infection or other reasons will receive emergency living expenses of up to 1.5 million KRW per person.

A 28 billion KRW win-win cooperation program, including interest support for freight vehicle purchases, will also be operated. Hyundai Glovis will continuously operate a 20 billion KRW ‘Win-Win & Coexistence Fund’ supporting business expansion and new business investments of logistics partners, as well as an 8 billion KRW win-win cooperation fund for partner freight drivers.

Through the Win-Win & Coexistence Fund, support will be provided to ensure that logistics partners’ facility investments proceed smoothly, and part of the loan interest from financial institutions for vehicle purchases by partner freight drivers will be borne.

The win-win cooperation fund will be used to provide convenience facilities such as rest tables and gardens at highway drowsy driving rest areas frequently visited by freight vehicles. Additionally, video recognition alarm systems will be installed on forklifts, and safety equipment such as automated external defibrillators and safety shoes will be supported. External specialized organizations will be appointed to establish on-site safety management systems and conduct safety education.

A Hyundai Glovis official said, “We have prepared various measures to participate in the government’s efforts to overcome the economic crisis and establish win-win policies between large and small-medium logistics companies,” adding, “We will continue to take the lead in creating a healthy ecosystem for mutual growth.”

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