This Year 9.2 Trillion Won... Concurrent Support Activities for Marginalized Groups
Major conglomerates such as Samsung, SK, Hyundai Motor, LG, POSCO, and Lotte have increased the scale of early payment for delivery payments before this year's Lunar New Year holiday by 26% compared to last year.
On the 5th, the Korea Economic Association's Small and Medium Business Cooperation Center announced this after conducting a survey titled "2024 Major Companies' Early Payment Plans for Subcontracting and Delivery Payments before Lunar New Year and 2023 Performance." This survey targeted 17 major groups among the corporate groups subject to disclosure announced by the Fair Trade Commission in April last year (Samsung, SK, Hyundai Motor, LG, POSCO, Lotte, Hanwha, GS, HD Hyundai, Shinsegae, KT, CJ, Hanjin, LS, Doosan, Hyundai Department Store, Hyosung) and was conducted from the 26th to the 31st of last month.
The Cooperation Center explained that the total amount of delivery payments early paid by major companies to their partners this year is 9.2 trillion KRW, which is approximately 26% higher than the 7.3 trillion KRW paid before last year's Lunar New Year. Choo Kwang-ho, head of the Cooperation Center, said, "It appears that major conglomerates have increased the scale of early delivery payments to ease the financial burden on partner companies and to revitalize the domestic economy despite the difficult management environment caused by high inflation and high interest rates."
In addition to supporting partner companies, major companies are also focusing on social contribution activities to support vulnerable groups and revitalize the local economy. Samsung and KT operate online malls for their employees, selling local agricultural, marine products, and specialties at discounted prices. SK Innovation delivered a mutual growth fund of 3.4 billion KRW to employees of 74 partner companies in the Ulsan area ahead of the Lunar New Year holiday. Hyundai Motor, LG, GS Group and its affiliates' employees visit facilities for vulnerable groups to deliver donations and daily necessities.
POSCO and its partner companies produce 400 boxes of traditional Lunar New Year ceremonial snacks to support the local economy and vulnerable groups, delivering them to isolated neighbors including elderly living alone and multicultural families in the region. Hanwha and HD Hyundai plan to deliver Lunar New Year gifts to welfare facilities in the Ulsan area where their core affiliates are located. Major companies and affiliates such as Doosan and Hyosung plan to carry out social contribution activities such as giving holiday gifts to partner company employees and delivering gifts to vulnerable groups.
Meanwhile, the Korea Economic Association sent a cooperation letter to its member companies on the 22nd of last month recommending ▲early payment of delivery payments to partner companies ▲purchase of domestic agricultural, livestock, and marine products for holiday gifts ▲advance payment of supplies and consumables as part of the 'Holiday Domestic Demand Promotion Campaign.'
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