LG Uplus Advances Payment of 16 Billion KRW to Over 2,000 Partner Companies

[Asia Economy Reporter Seulgina Jo] LG Uplus announced on the 7th that it will pay 16 billion KRW in delivery payments 100% in cash ahead of schedule to help about 2,000 small and medium-sized partner companies secure stable cash liquidity for the Lunar New Year holiday.

Since 2014, LG Uplus has promoted mutual growth with its partners by making early payments of delivery fees before the Chuseok and Lunar New Year holidays. The cumulative amount of early payments made last year reached 131 billion KRW.

This early payment fund will be paid to partners responsible for delivering wireless repeaters, wired network equipment, network construction, IT development, and operations. The partners who secure payments early plan to use them for new product production, facility investment, and research and development costs.

Previously, LG Uplus has also supported funds for partner companies facing difficulties due to the spread of COVID-19 beyond the holidays. The transaction amount paid early to partners between March and May last year reached about 70 billion KRW.

In addition, 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 so that small and medium-sized partners can receive funds at low interest rates, as well as a direct loan program of 30 billion KRW.

Since 2017, LG Uplus has also been conducting the ‘Partner Proposal Day,’ where small and medium-sized partners can propose ideas for communication equipment or solution development, and after a review process, a certain level of product purchase is guaranteed for the adopted products.

Kim Jongseop, head of Win-Win Growth and Purchasing at LG Uplus, said, “We expect that early payment before the holiday will secure the liquidity of our partners,” and added, “As a top company in the Win-Win Growth Index, we will continue to achieve mutual growth and coexistence with our partners.”