LG Uplus to Advance Payment of 52 Billion KRW to Over 2,000 Partner Companies

Support for Liquidity Secured with Full Cash Payment
Early Payment Settlements Total 70 Billion Won in First Half of This Year... Cumulative 257 Billion Won Executed

Ubiquoss employees, partners of LG Uplus, are inspecting communication equipment.
[Photo by LG Uplus]

[Asia Economy Reporter Kim Heung-soon] LG Uplus announced on the 23rd that it will pay a total of 52 billion KRW in delivery payments in cash early to help about 2,000 small and medium-sized partner companies secure liquidity ahead of Chuseok.

The early execution funds will be paid on the 29th to partner companies responsible for delivering wireless repeaters, wired network equipment, network construction, IT development, and operations.

As part of coexistence with small and medium-sized partners, LG Uplus pays 100% of transaction payments in cash and has made early payment settlements of delivery payments worth 70 billion KRW in the first half of this year for partners experiencing financial difficulties. Since 2014, delivery payments have been executed early before the Chuseok and Lunar New Year holidays, and the cumulative amount of delivery payments executed up to this time reaches 257 billion KRW.

To enable small and medium-sized partners to receive funds at low interest rates, LG Uplus operates a 75 billion KRW win-win growth fund in cooperation with IBK Industrial Bank of Korea, which lends funds at low interest rates, as well as a direct loan program of 30 billion KRW. In addition, in 2019, LG Uplus signed a 'Wage Gap Resolution Agreement' with the Win-Win Growth Committee and plans to support a total of 222.2 billion KRW by 2022 for joint technology development, test beds, and financial support for management stability with partner companies.

Kim Jong-seop, head of coexistence and procurement at LG Uplus, said, "We expect that the early execution of delivery payments will help partner companies struggling due to the novel coronavirus disease (COVID-19) this year secure liquidity."