LG to Advance Payment of 1.2 Trillion Won to Partners Ahead of Lunar New Year

8 Subsidiaries Advance Payments to Facilitate Smooth Fund Management

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] LG is advancing payment of delivery fees by up to 11 days and conducting essential goods sharing activities for underprivileged groups to promote mutual growth with partners and local communities ahead of the Lunar New Year holiday.

On the 12th, LG Group announced that eight affiliates?LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, and LG CNS?plan to pay a total of 1.2 trillion won in partner delivery fees before the Lunar New Year holiday, advancing payments by up to 11 days from the scheduled dates. This is expected to help reduce the temporary financial burden on partners who need to pay for raw materials and bonuses ahead of the Lunar New Year holiday.

In addition to early payment of delivery fees, LG affiliates operate a financial support program worth 1.2 trillion won, including a win-win cooperation fund and direct loans, to enable partners to secure funds through low-interest loans when needed. In particular, LG Electronics has been striving since 2015 to extend the benefits of its win-win payment system to third-tier partners. The win-win payment system aims to enable large corporations to pay the delivery fees they pay to first-tier partners early to second-tier and lower partners. It allows first-, second-, and third-tier partners to receive cash on the payment date, and second- and third-tier partners can convert delivery fees into cash early based on the credit of the large corporation even before the payment date, making it very useful.

Also, LG affiliates plan to share warmth by delivering daily necessities and food supplies to underprivileged neighbors in local communities in celebration of the Lunar New Year holiday. LG Electronics will deliver Lunar New Year food and school supplies to children with disabilities at the Amsa Rehabilitation Center of the Korea Social Welfare Association on the 17th. LG Chem will give holiday gifts to residents and elderly welfare facilities in Yeosu, Daesan, and Naju, where its business sites are located. LG Display will provide food supplies to elderly people living alone near its Gumi plant, and LG Household & Health Care will donate daily necessities and cosmetics to farming and fishing villages in the Gangwon and Chungcheong regions. LG HelloVision will deliver heart-sharing packages consisting of rice cakes and Korean traditional sweets to children at the local children's center in Wonju, Gangwon Province, and invite the children to the Wonju Open Studio to operate Lunar New Year holiday programs such as dumpling making.

An LG official said, “We decided to advance payment of delivery fees to help partners whose demand for funds increases during the Lunar New Year holiday,” adding, “We will strengthen win-win cooperation to support partners facing difficulties due to rising raw material prices and increased financial costs caused by high interest rates.”