Samsung Supports Lunar New Year Game Revitalization... Early Payment to Partners

Eleven Affiliates Including Samsung Electronics Join In

[Asia Economy Reporter Kim Pyeonghwa] Samsung has taken steps to revitalize the economy during the Lunar New Year holiday by making early payments to its partners in an effort to create an industrial ecosystem where large, small and medium-sized enterprises, and local communities grow together. Samsung Electronics Chairman Lee Jae-yong stated the reason for the support, saying, "Although the situation is difficult, we must overcome it together."

On the 12th, Samsung announced that it will make early payments for goods before the holiday break to reduce the financial burden on small and medium-sized partners. To stimulate the domestic economy, an 'Online Lunar New Year Market' will be held for employees, selling specialty products from sister villages and products from companies supported by smart factory initiatives.

Eleven affiliates, including Samsung Electronics, Samsung SDI, and Samsung C&T, will advance payments worth approximately 1.04 trillion KRW for goods up to two weeks ahead of the holiday, helping partners maintain smooth cash flow during the peak demand period.

In the case of Samsung Electronics, payments to secondary partners are also made in cash within 30 days. The frequency of payments has increased from twice a month to four times a month. By reflecting raw material costs and minimum wage increases in delivery prices, Samsung has stabilized partner management and improved the payment culture among domestic companies.

Samsung Electronics Chairman Lee Jae-yong visiting Dong-A Plating, a small and medium-sized enterprise located in Busan that received support for smart factory construction from Samsung Electronics last November, and inspecting the site /
[Photo by Samsung]

Seventeen affiliates, including Samsung Electronics, Samsung SDS, and Samsung Life Insurance, have opened online Lunar New Year markets for their employees to sell domestic agricultural, livestock, and marine products as well as specialty products from sister villages.

To facilitate this, each company operates online markets on internal bulletin boards or through shopping malls run by local governments where their business sites are located, as well as on Nonghyup Mall and Post Office Mall. The event is scheduled to run until the 20th.

This year, 49 small and medium-sized enterprises are participating in the market, selling over 100 types of agricultural, livestock, and marine products and processed foods such as Korean beef, dried yellow corvina, traditional Korean sweets, and seaweed. Samsung has also enabled small and medium-sized companies supported by Samsung Electronics’ smart factory initiatives to sell their products at the Lunar New Year online market.

Samsung stated, "Samsung Electronics and its affiliates have posted notices encouraging employees to purchase items from the online market on internal bulletin boards and are promoting sales by displaying products in workplace break areas," adding, "In a situation where Lunar New Year gift sales are declining recently, we expect this to expand sales channels for farmers and small businesses and contribute to revitalizing the domestic economy."