[Asia Economy Reporter Seungjin Lee] Shinsegae Group is launching a full-scale group-wide support effort to overcome the novel coronavirus infection (COVID-19).
On the 5th, Shinsegae Group announced that it will urgently produce and deliver 3,000 sets of relief supplies called the ‘Cheer Up Kit,’ containing masks and daily necessities, for frontline medical staff, paramedics, volunteers, and public health officials in the Daegu area who are dedicated to overcoming COVID-19.
The group will also provide financial support totaling 900 billion KRW to small and medium-sized partner companies facing management difficulties due to declining sales. In particular, priority support will be focused on small and medium-sized partner companies with business sites in Daegu and Gyeongbuk.
◆ Delivery of daily necessities relief supplies ‘Cheer Up Kit’ ＝ First, Shinsegae Group, in consultation with the Hope Bridge Korea Disaster Relief Association, will urgently produce and deliver the relief supplies ‘Cheer Up Kit’ containing daily necessities to medical staff, paramedics, volunteers, and public health officials in Daegu who are having difficulty purchasing basic daily necessities.
The ‘Cheer Up Kit’ consists of 11 types of food products such as Olban Kitchen and Peacock that frontline support personnel can easily eat, as well as hygiene products such as masks and hand sanitizers. In addition, it includes Vidi Vici facial cleanser and travel sets (skin lotion) from Shinsegae International.
Separately, Shinsegae Food will provide snacks to the medical staff at Yeungnam University Hospital, who are jointly developing care food, until the end of this month. Hearing that many medical staff are missing meals due to COVID-19 infected patients and operating screening clinics, they will provide 150 servings of simple snacks such as bread, fruit, and sandwiches daily.
◆ 900 billion KRW financial support for small and medium-sized partner companies facing management difficulties ＝ Shinsegae Department Store and E-Mart have decided to advance payment of 800 billion KRW in merchandise settlement payments to help the cash flow of about 5,000 small and medium-sized partner companies.
Shinsegae Department Store decided to advance payment of 400 billion KRW in merchandise settlement payments to about 2,000 small and medium-sized partner companies. The advanced payments will be for merchandise payments due in April and May, with the payment date moved up by up to two months to March 20.
E-Mart also decided to advance payment of 400 billion KRW in merchandise settlement payments to about 3,000 small and medium-sized partner companies, and plans to advance the payment date based on the delivery performance of the partner companies.
If small and medium-sized partner companies wish to receive early payment of merchandise settlement payments, Shinsegae Department Store accepts applications through the partner company website by the 11th, and E-Mart accepts applications through the relevant buyer until the end of April.
Shinsegae TV Shopping and E-Mart24 also joined in early payment of settlement payments for small and medium-sized partner companies. Shinsegae TV Shopping decided to advance payment schedules of 25 billion KRW in merchandise settlement payments to small and medium-sized partner companies. E-Mart24 also plans to advance payment schedules if small and medium-sized partner companies request early payment.
◆ Low-interest financial support and Starfield rent payment deferral ＝ Support using the Win-Win Growth Fund established by Shinsegae Department Store and E-Mart will also be provided. The Win-Win Growth Fund is a fund created to allow partner companies to receive low-interest loans to facilitate smooth cash flow and support management stability of small and medium-sized partner companies.
Of this, 87 billion KRW of available resources will be used to support partner companies experiencing difficulties in cash flow management. In particular, priority support will be focused on business sites in the Daegu and Gyeongbuk regions.
In addition, Shinsegae Property decided to defer rent payments for three months in March and April for about 1,000 small business owners and small and medium-sized partner companies operating in Starfield to reduce their burden, and plans to continue reviewing additional support while closely monitoring the situation.
Shinsegae Group said, “This support measure was prepared in the spirit of practicing the group’s core value of coexistence, which is ‘developing together with the local community and growing together with partner companies,’” and added, “We will continue to fulfill our corporate social responsibility as a win-win partner of the local community to overcome COVID-19.”
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