Business Community Strengthens Win-Win Management Ahead of Chuseok... Support for Partners and Local Economy

[Asia Economy Reporter Dongwoo Lee] Ahead of Chuseok, the business community is strengthening win-win management, including support for partner companies, to overcome the crisis caused by the impact of the novel coronavirus infection (COVID-19).

According to the business community on the 19th, Samsung is operating an online marketplace for employees in celebration of Chuseok and will make early payments of goods amounting to 1.1 trillion KRW to its partner companies. The decision to make early payments was made more than a week earlier than in previous years.

The online marketplace operation period has been extended to 4 weeks, more than double the previous duration. In addition to agricultural and marine products from sister villages, products from 27 small and medium-sized enterprises (SMEs) that received smart factory-related support from Samsung Electronics will also be showcased. Samsung Group is operating a fund worth 3.4 trillion KRW for first to third-tier partner companies to ensure stable management of SMEs.

Hyundai Motor Group and LG Group have not disclosed specific details such as payment amounts and the number of partner companies, but they plan to proceed smoothly with early payments to partner companies again this year.

SK Hynix has decided to make early payments of 150 billion KRW to partner companies ahead of Chuseok. They are selling sets of agricultural, livestock, and specialty products as well as daily necessities from the Gyeonggi Icheon and Cheongju regions online to all employees.

The company is also operating a total of 370 billion KRW in win-win funds, including a 300 billion KRW low-interest mutual growth fund and a 70 billion KRW interest-free payment support fund, to strengthen the competitiveness of small and medium partner companies. Earlier in April, they expanded the payment frequency for delivery payments from three times a month to four times a month to support SMEs struggling due to COVID-19.

POSCO is also revitalizing the local economy by purchasing gift certificates worth 12 billion KRW in Pohang and Gwangyang and distributing 500,000 KRW per person to about 8,600 employees. They also received gift certificates worth 4.3 billion KRW for employees of partner companies.

CJ Group will pay approximately 370 billion KRW in settlement payments in cash to small and medium partner companies before Chuseok. About 7,400 partner companies of six major affiliates are expected to benefit from the early payment.