[Asia Economy Reporter Yoo Hyun-seok] Hyundai Motor Group is engaging in mutual growth activities ahead of the Lunar New Year by advancing payment of delivery fees and purchasing Onnuri gift certificates.
Hyundai Motor Group announced on the 9th that it plans to pay 2.3766 trillion KRW in delivery fees ahead of the originally scheduled payment date, before the Lunar New Year holiday, to ease the financial burden on its partner companies ahead of the holiday. Additionally, the group will purchase approximately 9.5 billion KRW worth of Onnuri gift certificates to distribute to group employees, supporting the revitalization of traditional markets and boosting domestic consumption.
This early payment of delivery fees targets over 6,000 partner companies supplying parts, raw materials, and consumables to Hyundai Motor, Kia, Hyundai Mobis, Hyundai Glovis, Hyundai Steel, Hyundai Construction, Hyundai AutoEver, Hyundai Wia, and Hyundai Transys. These partners will be able to receive payments up to 27 days earlier than the scheduled payment date from Hyundai Motor Group.
Hyundai Motor Group expects that the early payment of delivery fees will help alleviate the temporary financial burden on partner companies during the Lunar New Year, when demands for bonuses, wages, and raw material payments intensify amid a high-interest rate environment.
Furthermore, Hyundai Motor Group plans to encourage first-tier partners to also advance payments to second- and third-tier partners before the Lunar New Year, thereby expanding the beneficiaries and amplifying the effects of early payment.
Hyundai Motor Group has annually advanced delivery fee payments before the Lunar New Year and Chuseok holidays to ease financial difficulties for partner companies. Last year, it advanced payments of 1.4402 trillion KRW and 1.8524 trillion KRW before the Lunar New Year and Chuseok, respectively.
At the end of last year, Hyundai Motor also advanced 353.1 billion KRW in delivery fee payments to partners to reduce their financial burdens caused by high interest rates.
A Hyundai Motor Group official stated, “We decided to advance delivery fee payments to partner companies ahead of the Lunar New Year, a period of high financial demand. We will overcome difficulties together with our partners amid challenging high-interest conditions.”
To revitalize traditional markets and boost domestic consumption, Hyundai Motor Group plans to purchase approximately 9.5 billion KRW worth of Onnuri gift certificates before the Lunar New Year holiday. Last year, it purchased 7.4 billion KRW and 28 billion KRW worth of Onnuri gift certificates before the Lunar New Year and Chuseok, respectively. Additionally, this Lunar New Year, the group will support increased farm income by enabling employees to purchase Korean agricultural products through the ‘Employee Online Shopping Mall.’
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