Hyundai Motor to Advance Payment of 353.1 Billion KRW to Suppliers

"Advance Payment Up to 14 Days to Ease Financial Burden"

Hyundai Motor Company announced on the 26th that it plans to advance payment of 353.1 billion KRW in supplier delivery payments, which are in high demand for funds at the end of the year, to be paid within this year.

[Asia Economy Reporter Oh Gyumin] Hyundai Motor Company announced on the 26th that it plans to advance payment of 353.1 billion KRW in delivery payments to its suppliers during the year, ahead of the year-end period when demand for funds surges.

With this early payment of delivery fees, parts suppliers can receive payments up to 14 days earlier than the scheduled payment date.

Hyundai explained that the purpose is to alleviate the financial burden on suppliers amid the tightening of the financial market caused by the ‘three highs (3Go)’ shock of high interest rates, high inflation, and high exchange rates. Furthermore, the company plans to expand the beneficiaries by encouraging not only first-tier suppliers but also second- and third-tier suppliers to receive delivery payments earlier within the year.

Hyundai expects this to help ease the temporary concentration of year-end funding needs for suppliers, such as wages and raw material payments.

A Hyundai official stated, “We hope that the early payment funds will be distributed evenly to second- and third-tier suppliers as well, helping to improve the financing conditions of our suppliers during these difficult times.”

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