LG Household & Health Care to Increase Delivery Payments to Partners... Up to KRW 20 Billion Within This Year

Reflecting Raw Material Prices to Ease Partner Companies' Burden
Promoting Sustainable Win-Win Transactions Based on the 'Delivery Payment Linkage System'

LG Household & Health Care is expanding increases in delivery payments to partner companies in response to rising raw material prices caused by the Middle East war.

On April 15, LG Household & Health Care announced that it held a 'Site Visit Meeting on the Delivery Payment Linkage System' together with the Ministry of SMEs and Startups at the LG Seoul Station Building in Jung-gu, Seoul, to discuss support measures for partner companies.

The event was attended by Han Seongsuk, Minister of the Ministry of SMEs and Startups, Lee Seonju, President of LG Household & Health Care, and representatives of partner companies.

On the afternoon of the 14th, Lee Seonju, President of LG Household & Health Care (third from the left), Han Sungsoo, Minister of SMEs and Startups (fourth from the left), and representatives of partner companies are taking a commemorative photo at the 'Field Visit Meeting on the Delivery Payment Linkage System' held at the LG Seoul Station Building in Jung-gu, Seoul. LG Household & Health Care

To date, LG Household & Health Care has raised delivery prices by a total of KRW 2.56 billion across 59 contracts with 15 partner companies. Starting this month, the company plans to consider additional increases for approximately 16,000 contracts with 47 partner companies. As a result, the total increase is expected to reach up to KRW 20 billion within this year.

The Delivery Payment Linkage System is a system that adjusts delivery prices in line with fluctuations in raw material costs, and it was introduced to ease the cost burden on partner companies. Since participating in the system in 2023, LG Household & Health Care has been selected as an outstanding company in linkage for two consecutive years, and has received the highest 'Excellent' grade multiple times in the Shared Growth Index evaluation.

Minister Han Seongsuk commented, "The value of mutual growth demonstrated by LG Household & Health Care is a valuable asset that enhances the resilience of our economy in times of crisis," and expressed gratitude to all LG Household & Health Care employees who are working together with partner companies to overcome challenges."

President Lee Seonju stated, "We plan to continuously operate relevant systems to maintain a stable trading foundation with our partner companies."

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