LG Electronics "Supporting Partners with Special Interest Rates More Than Twice Reduced Compared to Last Year"

Expansion of Financial Support for Partner Companies

LG Electronics announced on the 14th that it will operate a 200 billion KRW-scale ‘Win-Win Cooperation Fund’ with a special discounted interest rate applied to the general corporate loan interest rate. This measure aims to alleviate the financial burden on partner companies.

Partner companies using the Win-Win Cooperation Fund can secure funds at lower interest rates compared to the market by receiving an additional special discounted interest rate. This year, LG Electronics conducted a bidding process targeting the four major commercial banks to support the special discounted interest rate, and established the Win-Win Cooperation Fund with the bank offering the highest interest rate discount. The interest rate discount has been expanded to more than twice that of last year.

[Image source=Yonhap News]

Since 2010, LG Electronics has been operating a 200 billion KRW-scale Win-Win Cooperation Fund, created with deposits and contributions from commercial banks, providing low-interest loans to partner companies in need of operating funds. Since the year before last, the support target has been expanded to include third-tier partner companies.

LG Electronics also continues to provide interest-free direct financial support to partner companies. It has been providing approximately 40 billion KRW annually to partner companies requiring new and automated facility investments. Additionally, it operates the ‘Overseas Joint Expansion Partnership’ program in collaboration with the Export-Import Bank of Korea. Last year, about 110 billion KRW in preferential loans were provided to 16 partner companies for overseas joint expansion. The support amount increased by 30% compared to the previous year.

Wang Cheol-min, Executive Vice President and Head of LG Electronics Global Operations Center, said, “To enhance the competitiveness of our partner companies, we will not only expand financial support but also spare no effort in exploring and supporting various cooperation measures to ensure the spirit of win-win reaches even first-tier and lower partner companies.”