Samsung, Hyundai Motor groups pay suppliers early for Chuseok

Samsung employees purchasing products at the ‘Online Market for Chuseok’. [Courtesy of Samsung Group]

Samsung Group and Hyundai Motor Group are advancing payments to their suppliers ahead of the Chuseok holiday, demonstrating their commitment to mutually beneficial business practices.

The group announced on Sunday that 12 of its members will pay about 870 billion won ($650 million) to their suppliers up to 15 days ahead of schedule., Samsung affiliates have been increasing payment cycles from twice a month to three to four times a month since 2011 to strengthen cooperation with their partners. Group companies participating in the advance payments include Samsung Electronics Co., Samsung Display Co., Samsung Electro-Mechanics Co., Samsung SDI Co., Samsung SDS Co., Samsung Biologics Co., Samsung Bioepis Co., Samsung C&T Corp., Samsung Heavy Industries Co., Samsung E&A Co., Samsung Welstory Inc., and Cheil Worldwide Inc.

Hyundai Motor Group will also advance payments of about 2.4 trillion won up to 14 days early to ease the financial burden on its suppliers. The early payments will benefit over 6,000 suppliers that provide parts, raw materials, and consumables to Hyundai Motor Group’s affiliates, including Hyundai Motor Co., Kia Corp., Hyundai Mobis Co., Hyundai Glovis Co., Hyundai Engineering & Construction Co., Hyundai Steel Co., Hyundai AutoEver Corp., Hyundai Wia, and Hyundai Transys Inc.

The company also plans to encourage its primary suppliers to advance payments to their secondary and tertiary suppliers before the holiday, expanding the benefits and increasing the impact of early payments. It will also purchase 25 billion won worth of traditional market gift certificates to support the local economy and stimulate small businesses, as well as promote the consumption of domestic agricultural and seafood products.