HD Hyundai Construction Equipment's 3 Companies to Advance Payment of 240 Billion KRW to Partners

Advance Payment to 820 Companies Ahead of Seol
Alleviating Financial Burden in High-Interest Era

[Asia Economy Reporter Han Ye-ju] Three companies in the HD Hyundai Construction Equipment Division have embarked on win-win management by making early payments of delivery transaction funds to their partner companies.

Hyundai Genuine, Hyundai Construction Equipment, and Hyundai Doosan Infracore announced on the 16th that they will make early payments of purchase funds worth 240 billion KRW to their partner companies ahead of the Lunar New Year holiday.

The payment targets are 820 small and medium-sized enterprises supplying raw materials, parts, and consumables to the three companies. Hyundai Doosan Infracore's partner companies will receive payments advanced from the end of January to the 18th, while Hyundai Genuine and Hyundai Construction Equipment will make early payments on January 20 for materials delivered between January 1 and 15, allowing partner companies to receive delivery payments up to 11 days earlier.

The three companies in the HD Hyundai Construction Equipment Division decided to make early payments of delivery funds to ease the burden on partner companies struggling with cash flow under the high-interest financial market environment and to support smooth fund management.

A Hyundai Genuine official said, "We hope that the early payment of funds ahead of the holiday will help the liquidity of small and medium-sized partner companies facing greater difficulties due to recent high interest rates and economic recession," adding, "We will continue to support partner companies' ESG management and mutual growth."

The three HD Hyundai Construction Equipment companies have been participating in a pilot project for the 'Delivery Payment Linkage System' since last September, which automatically reflects raw material price fluctuations in delivery prices to promote fair trade and coexistence. Hyundai Doosan Infracore, which introduced the delivery price linkage system with partner companies as early as 2012, was selected as a model company with the most consigned companies among participating firms. This year, they launched the 'Supply Chain ESG Management Support Project' to assist partner companies struggling with ESG management implementation.