Hyundai Motor Group is enhancing cooperative efforts across its supply chain to support future mobility competitiveness.
On July 7, Hyundai Motor Group announced that it held a signing ceremony for a cooperation agreement at the DoubleTree Hotel in Pangyo, Seongnam, Gyeonggi Province. The agreement, which includes the Fair Trade Commission and first- and second-tier suppliers, aims to establish a foundation for collaboration in the future mobility ecosystem and expand cooperative partnerships.
To strengthen the overall stability of its supply chain, Hyundai Motor Group will improve payment terms. The company plans to pay suppliers within an average of 10 days, shorter than the legal payment deadline of 60 days, to alleviate financial burdens. It will also provide training, monitoring, and incentives to help first-tier suppliers shorten payment deadlines for second-tier suppliers.
Additionally, the group will increase the utilization of its cooperative payment system to support stable cash flow within the supply chain. This system operates based on the credit of the top-tier purchasing company, allowing first-, second-, and third-tier suppliers to cash in their payment receivables early. Second- and third-tier suppliers will also be able to secure funding at interest rates comparable to those of large corporations, reducing financial costs and enabling quicker cash conversion of their receivables.
The Fair Trade Commission will provide incentives to companies that implement the agreement and actively support the successful execution of the agreement by addressing the concerns of suppliers regarding improved payment terms.
Moreover, Hyundai Motor Group plans to support suppliers in becoming partners in the future mobility ecosystem through various cooperative efforts, including education, technology, and finance.
A Hyundai Motor Group official stated, "We aim to enhance the competitiveness of our suppliers, elevate the overall technological level of the supply chain, and grow the future industrial ecosystem together with our partners. We will continue to provide practical support to spread a fair and sustainable cooperative culture throughout the supply chain."
Meanwhile, Hyundai Motor Group is set to invest 125.2 trillion won in South Korea from 2026 to 2030, focusing on strengthening competitiveness in electrification, software-defined vehicles (SDVs), robotics, and hydrogen sectors. The expansion of cooperative foundations with suppliers is seen as a strategy to stabilize the supply chain amid this transition to future mobility.
* This article has been translated by AI.
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