KT&G to Provide Payment to Small and Medium Partners One Month Earlier in Cash

Strengthening Win-Win Management Ahead of Seol Holiday
41 Suppliers Totaling 66.4 Billion Won

KT&G announced on the 25th that it will pay settlement payments in cash early to reduce the burden on small and medium-sized partner companies and strengthen win-win management ahead of the Lunar New Year holiday.

KT&G plans to pay a total of 66.4 billion KRW in settlement payments to 41 partner companies that supply raw and subsidiary materials and consumables, advancing the payment by an average of more than one month compared to the normal payment date.

Every year before the Lunar New Year and Chuseok holidays, KT&G has been executing early payments to ease the financial burden on small and medium-sized partner companies, which face increased cash demand. Last Chuseok, KT&G also prepaid settlement payments worth 91.7 billion KRW to support the liquidity of its partners.

Additionally, in November last year, KT&G joined the ‘Delivery Payment Linkage System Partner Company’ program, which reflects raw material price increases in delivery payments to reduce the burden on small and medium-sized partners, leading efforts to establish a culture of win-win transactions and promote a fair market economy.

Furthermore, to alleviate financial difficulties of partner companies, KT&G operates various support systems for mutual growth, such as paying delivery payments in full cash every month.

A KT&G official stated, “Amid ongoing global inflation and interest rate hikes, we decided to advance the payment of settlement funds to partner companies ahead of the Lunar New Year holiday, when cash demand is high. We will continue to seek various support measures to realize the value of win-win growth with our partners and enhance sustainability across the entire value chain.”

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