Samsung Operates Online Market for Lunar New Year... Advances Payment for Partner Companies' Goods

17 Affiliates Join to Boost Domestic Economy
Last Year’s Online Marketplace Sales Reach 2.8 Billion KRW
Payment of 560 Billion KRW for Goods Advanced by Up to Three Weeks

Samsung Group is participating in revitalizing the domestic economy by operating an online marketplace ahead of the Lunar New Year holiday, purchasing agricultural, livestock, and fishery products as well as sister village goods. Payment of 560 billion KRW for goods from small and medium-sized partner companies will also be advanced by up to three weeks.

Samsung Display employees purchasing products on an online marketplace. Photo by Samsung

On the 15th, Samsung announced that a total of 17 companies, including all 15 listed companies such as Samsung Electronics, Samsung C&T, Samsung Biologics, and Samsung Life Insurance, as well as Samsung Display and Samsung Bioepis, will operate the online marketplace.

Samsung affiliates plan to continue operating the online marketplace on internal bulletin boards, local government shopping malls, and direct transaction malls for small business owners until just before the Lunar New Year holiday begins.

More than 60 smart factory companies, which Samsung Electronics has transferred manufacturing technology know-how to, will participate in this Lunar New Year online marketplace, selling products such as red ginseng extract, pear and balloon flower root concentrate, stone seaweed, and rice cake soup rice cakes.

Since 2011, Samsung has operated direct transaction and online marketplaces every holiday, contributing to expanding sales channels and increasing profits for rural and small businesses. Last year, the total value of products purchased by employees through the online marketplace during the Lunar New Year and Chuseok holidays amounted to 2.8 billion KRW.

In addition, to prevent partner companies from experiencing financial difficulties ahead of the holiday, payment of 560 billion KRW for goods will be advanced by up to three weeks. This includes participation from 11 affiliates such as Samsung Electronics, Samsung Display, Samsung SDI, Samsung SDS, Samsung Biologics, Samsung Bioepis, Samsung C&T, Samsung Engineering & Construction, Samsung Heavy Industries, Cheil Worldwide, and Wellstory.

Since 2011, Samsung’s major affiliates, including Samsung Electronics, have supported smooth financial operations of partner companies by paying for goods 3 to 4 times a month.

Samsung is conducting various support activities for co-growth with domestic small and medium enterprises. Since 2015, Samsung Electronics has supported over 3,200 small and medium-sized enterprises and mid-sized companies by transferring manufacturing innovation know-how and providing free access to unused patents through its smart factory program.

Samsung Electronics, together with Samsung Display, has established a 1 trillion KRW 'Partner Company ESG (Environment, Social, Governance) Fund,' allowing small and medium-sized partner companies to borrow up to 2 billion KRW interest-free for up to three years. Since 2018, Samsung has also proactively introduced a payment linkage system that reflects increased labor costs due to minimum wage hikes in delivery prices.

Samsung stated, "We plan to operate various support programs to continuously grow together with our partner companies."