Home&Shopping to Pay Partner Companies Within 3 Days After Settling Product Sales Proceeds

Shortening Funding Support by One Day for Small and Medium Partner Companies Struggling Due to COVID-19

CEO Kim Okchan

[Asia Economy Reporter Kim Cheol-hyun] From now on, partners trading with Home&Shopping will be able to receive their product sales payments within 3 days after the settlement closing. Home&Shopping (CEO Kim Ok-chan) announced on the 3rd that starting in August, it will shorten the payment timing for partner product sales proceeds to one of the shortest in the industry.

Typically, home shopping companies close three times a month at ten-day intervals and pay sales proceeds based on business days. With this policy change, Home&Shopping will adjust the payment dates for sales from the 1st to the 10th, the 11th to the 20th, and the 21st to the end of the month to the 13th, 23rd, and the 3rd of the following month, respectively.

Previously, partners had to wait an average of 9 days to receive product sales payments, but after the change, they can settle payments in an average of 8 days. This is at least 2 to up to 7 days faster than the industry average payment cycle. Additionally, product sales payments are made 100% in cash.

This improvement in the product sales payment timing is expected to greatly help small and medium-sized partners who have difficulty managing funds in home shopping transactions where large sales occur in a short period.

In fact, since its official launch in 2012, Home&Shopping has continuously worked to shorten the payment timing for product sales proceeds. As a result, the initial average payment period of 32.5 days has been drastically reduced by more than three weeks to an average of 8 days.

Kim Ok-chan, CEO of Home&Shopping, said, "During these difficult times due to COVID-19, many small and medium-sized partner companies find even a day or two critical due to reasons such as fund management," adding, "We will continue to do our best to establish and operate practical policies for the stable financial management of our partners."