POSCO E&C, Early Payment of 89 Billion KRW to Partners Ahead of Chuseok

POSCO E&C announced on the 5th that it will advance payment of transaction amounts to small and medium-sized partner companies by up to 10 days in anticipation of increased cash demand during the Chuseok holiday.

POSCO E&C Headquarters Building / Photo by POSCO E&C

To support smooth cash flow for small and medium-sized partners, the company plans to pay 89 billion KRW in transaction amounts, originally due between the 13th and 22nd of this month, on the 12th. The payment targets 970 small and medium enterprises currently doing business with POSCO E&C. The transaction amounts will be paid entirely in cash.

POSCO E&C has been paying the full transaction amounts to small and medium enterprises in cash since 2010, the first in the industry to do so.

A POSCO E&C official stated, "The financial burden on partner companies is increasing due to the downturn in the construction industry and high interest rates," adding, "We hope that this early payment will provide some relief to the financial burdens of our partners who are always doing their best despite the challenging business environment."

Meanwhile, since 2011, POSCO E&C has been supporting its partners by operating the 'Win-Win Growth Fund,' which offers loans at low interest rates for operating funds, and the 'Together Win-Win Loan,' which allows loans from financial institutions secured by contracts between the company and its partners.