Telecom 3 Companies to Advance Payment of 273.9 Billion KRW Ahead of Chuseok

[Asia Economy Reporter Lim Hye-seon] Ahead of Chuseok, the three major telecom companies will make early payments totaling 273.9 billion KRW to their partner companies to reduce financial burdens.

According to the telecommunications industry on the 3rd, the ICT family including SKT will make early payments of about 52 billion KRW to approximately 1,100 small and medium-sized partners such as network equipment and maintenance companies, and about 80 billion KRW to around 270 agencies nationwide. This is to help small business partners responsible for network equipment, maintenance, and service operations, who have been fully committed to maintaining service quality even during the COVID-19 situation, to manage their funds smoothly ahead of the holiday. This year, SKT’s total early payments to small and medium-sized partners amount to 480 billion KRW.

In addition, the interest rate support for loans to excellent partners through the Win-Win Growth Fund has been increased by 0.93 percentage points compared to before. The Win-Win Growth Fund is a system where SKT deposits funds into a bank, and the interest earned on the deposit is used to reduce loan interest rates and provide emergency loans to business partners.

KT Group will make early payments of 124.9 billion KRW in partner delivery payments by the 7th, advancing the schedule by up to 20 days. Six affiliates including KT Alpha, KT Commerce, KT DS, KT Engineering, HCN, and Initech are also participating in this early payment for partners ahead of the Chuseok holiday. KT has continuously advanced delivery payments to partners during Lunar New Year and Chuseok holidays. Last Chuseok, KT and its affiliates paid a total of 117.7 billion KRW in advance, and during this year’s Lunar New Year, a total of 75.6 billion KRW was paid early.

Along with this, KT is implementing the ‘2022 Chuseok Clean KT Campaign’ to strengthen ethical management practices. This campaign, which prohibits exchanging gifts with stakeholders such as partners, will be conducted for about two weeks until the 15th. During this period, if stakeholders including partners offer gifts to KT employees, the employees must clearly refuse to accept them. If gifts are sent inevitably, a rejection letter will be enclosed and the gifts will be returned to the sender.

LG Uplus will make early payments of 17 billion KRW in delivery payments, 100% in cash. Since 2014, LG Uplus has been advancing delivery payments before the Chuseok and Lunar New Year holidays to promote mutual growth with its partners. The cumulative amount of early payments over seven years until the end of last year reached 330 billion KRW.

The early payment funds are provided to partners responsible for wireless repeaters and wired network equipment delivery, network construction, IT development, and operations. The partners plan to use the early secured funds for new product production, facility investment, and research and development expenses.

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