LG Innotek to Advance Payment of Delivery Fees to Small and Medium Suppliers Ahead of Lunar New Year Holiday

[Asia Economy Reporter Jeong Hyunjin] LG Innotek announced on the 24th that it will make early payments of delivery fees to small and medium-sized partner companies struggling due to COVID-19 ahead of the Lunar New Year holiday.

LG Innotek plans to pay 72.4 billion KRW, scheduled to be paid in February and March, by the 27th of this month before the Lunar New Year holiday, out of the total delivery fees of 144.5 billion KRW to be paid to partner companies. LG Innotek, which had previously made early payments of 72.1 billion KRW at the end of last year, explained that it considered the concentrated financial needs of partner companies for various bonuses, wages, and raw material payments ahead of the holiday.

LG Innotek also plans to encourage first-tier partners to make early payments to second- and third-tier partners before the holiday to help spread the effect of early payments.

In addition, LG Innotek has expanded the scope of support to enable partner companies facing operational crises due to COVID-19 to utilize the 103 billion KRW-scale Win-Win Growth Fund. The Win-Win Growth Fund is a system that lends operating funds to partner companies at interest rates lower than banks. While the fund was previously used for investments to improve quality and productivity, new product and technology development, and overseas expansion, it can now also be used to alleviate financial difficulties caused by COVID-19.

Jung Cheol-dong, President of LG Innotek, said, "We will sincerely and actively carry out win-win activities that provide practical help to our partner companies for customer experience innovation that only LG Innotek can offer."

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