Hyundai Motor Group to Advance Payment of 1.2354 Trillion KRW to Partners Before Chuseok

Alleviating Financial Burden for Over 3,000 Partners
Purchase of 21.6 Billion Won in Onnuri Gift Certificates... Contributing to Revitalization of Traditional Markets and Domestic Demand

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Hyundai Motor Group is taking steps to support its partners ahead of the Chuseok holiday by making early payments for delivered goods and purchasing Onnuri gift certificates.

On the 1st, Hyundai Motor Group announced that to ease the financial burden on its partners before Chuseok, it plans to pay 1.2354 trillion KRW in delivery payments earlier than the originally scheduled date, before the Chuseok holiday.

This early payment of delivery fees targets about 3,000 partner companies supplying parts, raw materials, and consumables to Hyundai Motor, Kia, Hyundai Mobis, Hyundai Construction, Hyundai Glovis, and others. As a result, partners can receive payments up to 37 days earlier than the scheduled payment date.

Hyundai Motor Group expects that the early payment of delivery fees will help alleviate the temporary concentration of financial demands on partners, such as bonuses and various wages, as well as payments for raw and subsidiary materials, ahead of the holiday.

Additionally, Hyundai Motor Group plans to encourage first-tier partners to also advance payments to second- and third-tier partners before Chuseok, so that the effect of early payments can spread further.

Hyundai Motor Group has been making advance payments to ease partners' financial difficulties before the Lunar New Year and Chuseok holidays every year. Last Chuseok and this Lunar New Year, it executed early payments of 1.1087 trillion KRW and 1.8767 trillion KRW, respectively.

A Hyundai Motor Group official said, “We decided to advance delivery payments to partners ahead of the Chuseok holiday, when financial demand is high,” adding, “We will strive to ensure that these funds are distributed evenly to second- and third-tier partners so that employees of partner companies can have a warm holiday despite the difficulties caused by COVID-19.”

Hyundai Motor Group also plans to purchase approximately 21.6 billion KRW worth of Onnuri gift certificates before the Chuseok holiday to revitalize traditional markets and stimulate domestic consumption. Previously, Hyundai Motor Group purchased Onnuri gift certificates worth 28.5 billion KRW and 30.6 billion KRW before last Chuseok and this Lunar New Year, respectively. Furthermore, this Chuseok, the group will operate an online shopping mall for employees to purchase about 14,800 domestic agricultural products, supporting farmers' income by enabling employees to celebrate the holiday with Korean agricultural products.

Moreover, employees of Hyundai Motor Group’s 16 affiliates plan to deliver Onnuri gift certificates, donations, and Chuseok gifts to partnered facilities and marginalized neighbors over ten days from the 6th to the 15th.

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