LG to Advance Payment of 1.2 Trillion Won to Partners Ahead of Chuseok

Early Payment Amount Increased by 250 Billion Won Compared to Last Year's Chuseok

LG has decided to advance payment of delivery fees by up to 18 days and carry out essential goods sharing activities to promote mutual growth with its partners and local communities ahead of the Chuseok holiday.

On the 14th, LG announced that eight affiliates?LG Electronics, LG Display, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, LG CNS, and D&O?plan to pay a total of 1.2 trillion won in delivery fees to their partners before the Chuseok holiday, advancing payments by up to 18 days from the scheduled dates. The early payment amount has increased by 250 billion won compared to last Chuseok.

This measure is intended to support partner companies that experience a temporary surge in funding needs for raw material payments and bonuses during the Chuseok holiday. LG also advanced delivery fee payments ahead of schedule during the last Lunar New Year to help small and medium-sized partners manage their cash flow smoothly.

Separately, LG affiliates operate a financial support program worth 1.2 trillion won, including win-win cooperation funds and direct loans, to enable partners to secure funds through low-interest loans. In particular, LG Electronics applied a special interest rate for this year’s win-win cooperation fund that is more than twice reduced compared to the previous year to ease financial burdens on partners. Additionally, since 2015, LG Electronics has operated a win-win payment system that allows partners to secure liquidity by early cashing on payment dates. Last year, over 150 first-tier partners and about 1,100 second- and third-tier partners used LG Electronics’ win-win payment system.

LG Innotek has also increased the scale of its win-win growth fund by 40 billion won this year compared to last year, while LG Energy Solution established a 150 billion won win-win growth investment support fund in 2020, providing financial support such as preferential interest rates for small and medium-sized enterprises’ equipment and operating funds.

Meanwhile, LG affiliates plan to share warmth by delivering daily necessities and food supplies to underprivileged neighbors in local communities during the Chuseok holiday. LG Display will support food supplies and other items to low-income families and welfare centers near its business sites in Paju, Gyeonggi Province, and Gumi, North Gyeongsang Province. LG Innotek will conduct volunteer activities delivering holiday food and gifts to underprivileged groups and social welfare centers in Magok, Pyeongtaek, and Ansan, where its business sites are located.

An LG official said, “We decided to advance delivery fee payments to help partners whose funding needs increase during the Chuseok holiday,” adding, “We will continue to strengthen various win-win activities that benefit our partners, such as early payment of delivery fees and expansion of the win-win payment system.”

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