Hyundai Motor Group will pay suppliers early and expand support for vulnerable groups ahead of the Chuseok holiday.
The group said on the 9th that it plans to pay 2.2562 trillion won ($1.6 billion) in supplier payments up to 23 days ahead of the original due dates.
The affiliates making early payments include Hyundai Motor (005380.KS), Kia (000270.KS), Hyundai Mobis (012330.KS), Hyundai Engineering & Construction (000720.KS), Hyundai Steel (004020.KS), Hyundai Glovis (086280.KS), Hyundai Transys, Hyundai Wia (011210.KS), Hyundai AutoEver (307950.KS), Hyundai Rotem (064350.KS) and Hyundai Engineering. About 6,000 suppliers that provide parts, raw materials and consumables are covered.
The group said the early payments are intended to ease cash-flow pressure at suppliers, which face concentrated outlays around Chuseok for employee bonuses and other wages as well as raw and subsidiary material costs, and to help stabilize their operations.
Hyundai Motor Group also recommended that first-tier suppliers make early payments to their own second- and third-tier suppliers. The aim is to spread the practical benefits of early payment across the entire supply network.
The group will also carry out a range of community programs for vulnerable groups over the holiday. Centered on its worksites nationwide, it plans to deliver needed goods and meals to vulnerable households and to support employee volunteer work, traditional markets and local farms.
Hyundai Motor's Ulsan plant will hold a shopping event at Hogye Market in Ulsan's Buk-gu district and deliver the purchased goods to low-income households and social welfare facilities. The event follows up on the "Win-Win Market Project," launched in July this year in partnership with the Ulsan Metropolitan Government to connect companies with traditional markets.
Hyundai Steel and other affiliates will provide holiday gifts and meals for low-income households, older adults and other neighbors in need, along with meal-serving volunteer work and grocery support.
"With Chuseok bringing a concentrated need for cash, we will pay suppliers early and also support employee volunteer work, traditional markets and local farms," a Hyundai Motor Group official said. "We will continue working to build a mutual-growth ecosystem in which we develop together with our suppliers and local communities, share value and all grow together."
