Lee Jae-yong's 'Donghaeng'... Samsung Advances Payment of 2.1 Trillion Won to Partners Ahead of Seol Holiday

Twice the Amount Paid Early Last Lunar New Year
Online Market Also for Employees

Samsung has stepped up to support the revitalization of the domestic economy ahead of the Lunar New Year holiday, following the co-prosperity vision of Samsung Electronics Chairman Lee Jae-yong, who stated that "sharing together and growing together is the path to becoming the world's best."

Samsung Electronics Chairman Lee Jae-yong is visiting Dong-A Plating, a plating company based in Busan that received support from Samsung Electronics for building a smart factory, to inspect the manufacturing site.
[Photo by Samsung Electronics]

On the 29th, Samsung announced that it will make early payments totaling 2.14 trillion KRW to its partner companies for goods supplied. This amount is more than double the early payment of 1.04 trillion KRW made during last year’s Lunar New Year.

The early payment for goods involves 11 affiliates including Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung Biologics, Samsung Bioepis, Samsung C&T, Samsung Engineering, Cheil Worldwide, and Wellstory. Each company plans to make payments up to 21 days earlier than the scheduled dates.

Since 2011, major affiliates including Samsung Electronics have increased the payment frequency for goods from twice a month to three to four times a month to support smooth cash flow for partner companies. Since 2018, Samsung has proactively introduced a payment linkage system that reflects labor cost increases due to minimum wage hikes in the delivery prices to support its partners.

Samsung Electronics Chairman Lee Jae-yong has emphasized support for partner companies, stating in October 2022 that "we must share and grow together with customers, shareholders, partner companies, and local communities."

Alongside this, Samsung operates an 'online marketplace' for its employees. Seventeen affiliates including Samsung Electronics, Samsung C&T, and Samsung Life Insurance have opened an online marketplace for employees, starting sales of ▲local agricultural specialties from across the country ▲products from sister villages ▲and products from small and medium enterprises supported by smart factory initiatives.

Samsung has operated online or offline direct transaction markets every year during holidays and purchased products worth over 7 billion KRW during last year’s Lunar New Year and Chuseok holidays.

This year’s Lunar New Year online marketplace features sales of ▲Korean beef gift sets ▲seafood sets ▲and processed foods.

Through smart factory support, Samsung helps small and medium enterprises improve production efficiency while providing Samsung employees with opportunities to purchase their products.

Earlier, Samsung Electronics launched the 'Smart Factory Construction Support Project' in 2015 to help improve the manufacturing environment of small and medium-sized enterprises, supporting over 3,200 cases through last year. Since last year, it has also been promoting the 'Smart Factory 3.0' project, which upgrades existing smart factories using artificial intelligence (AI) and data technologies.

The win-win and goods payment fund established by Samsung to help stabilize the management of small and medium partner companies has grown from 2.3 trillion KRW in 2010 to 3.4 trillion KRW currently. Partner companies can use the fund to secure capital for company development such as facility investment and research and development (R&D).

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