Hyundai Construction "Expanding Win-Win Growth Fund to 160 Billion Won"

"Industry's Largest '160 Billion KRW Scale Win-Win Growth Fund Established, Liquidity Support'
Early Payment of 350 Billion KRW for Subcontracting and Delivery Fees to Partners Before Chuseok Holiday"

[Asia Economy Reporter Yuri Kim] Hyundai Construction announced on the 23rd that it will expand the scale of its Win-Win Growth Fund from the existing 100 billion KRW to 160 billion KRW starting in the second half of this year. This is the largest scale in the industry, and through this, the company plans to create opportunities for more partner companies to receive financial support than before.

The Win-Win Growth Fund is a system where Hyundai Construction deposits funds in commercial financial institutions, and those banks provide loans to partner companies that request loans at interest rates lower than the market rate.

From this year, the contract performance guarantee fee will also be expanded to 1.5 billion KRW annually. The guarantee institutions include six organizations such as the Specialized Construction Mutual Aid Association and Seoul Guarantee Insurance, and the system supports partners after they pay the fees.

In particular, this year, Hyundai Construction plans to extend the repayment period for direct loans only for small and medium-sized partner companies facing financial difficulties due to the novel coronavirus disease (COVID-19), encouraging early business normalization for partners. In addition, Hyundai Construction explained that it is making efforts to alleviate the financial burden on partner companies by shortening the payment period for construction payments.

Hyundai Construction will also advance the payment of 350 billion KRW in delivery payments to about 1,000 partner companies before the holiday, ahead of Chuseok, to ease their financial burden. By making early payments before the holiday, Hyundai Construction expects this to help partner companies relieve the temporary concentration of financial demands for bonuses, various wages, and raw material and equipment costs.

Hyundai Construction stated, "Even in difficult times with uncertainties due to COVID-19, we are leading sustainable management by strengthening communication between large and small-medium enterprises and providing various financial support programs to promote win-win cooperation with partner companies." It added, "We will continue to build a win-win cooperation system in the future to achieve mutual growth."