HD Hyundai (267250.KS) said on the 17th that it will pay 376.2 billion won ($271 million) in materials costs to its suppliers ahead of the Chuseok holiday.
The company has made early payments to suppliers before the Lunar New Year and Chuseok holidays each year. It said the move should help suppliers manage their cash more smoothly at a time when demand for funds rises to cover travel allowances and bonuses for their employees.
The early payments include 139.4 billion won from HD Hyundai Heavy Industries (329180.KS), 86.5 billion won from HD Hyundai Samho, 71.1 billion won from HD Hyundai Electric (267260.KS), 38.8 billion won from the refining division including HD Hyundai Oilbank, 26.6 billion won from HD Hyundai Marine Engine (071970.KS) and 13.8 billion won from HD Hyundai Marine Solution (443060.KS). Each company is moving up its payment date by as much as 12 days.
"We are carrying out a range of support programs to grow together with our suppliers," an HD Hyundai official said. "We hope these early payments help them secure liquidity and build a stable business environment."
Separately, five companies — HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Marine Solution, HD Hyundai Electric and HD Hyundai Construction Equipment (267270.KS) — signed a joint agreement with suppliers on the 10th to settle all payments in cash or cash equivalents. HD Hyundai said it plans to establish fair trading practices and strengthen suppliers' competitiveness through financial and technical support, extending the benefits of cooperation across its supply chain.
