POSCO Group said on the 15th that it will pay suppliers a combined 436.8 billion won ($315 million) up to 13 days ahead of the original due dates, ahead of the Chuseok holiday. The move is intended to ease funding pressure on suppliers, whose cash needs are concentrated before the holiday as they pay bonuses and settle raw material costs.
POSCO and POSCO FLOW will make early payments totaling 366 billion won to their business partners between the 16th and the 23rd.
POSCO E&C will disburse 44.8 billion won on the 17th, while POSCO Future M and POSCO DX will each pay about 13 billion won in cash on the 22nd. POSCO Group has moved up payment dates for supplier transactions ahead of the Lunar New Year and Chuseok holidays every year.
POSCO in particular began settling all payments to small and medium-sized suppliers in cash in December 2004, and expanded the practice to mid-sized companies in November 2017. POSCO FLOW and POSCO E&C have also paid small and medium-sized suppliers entirely in cash since 2022 and 2010, respectively.
POSCO Group will also carry out a range of community programs for the holiday. Centered on the areas where its main plants are located, the group plans to support local businesses, help serve meals at free food centers, clean up facilities for people with disabilities and join marine ecosystem cleanup efforts.
