Hyundai Motor Group announced on September 9 that it will advance payments to its suppliers to alleviate their financial burdens ahead of the Chuseok holiday. The total amount of the payments is 2.2562 trillion won, which is up to 23 days earlier than the original payment dates.
This early payment initiative involves major affiliates of Hyundai Motor Group, including Hyundai Motor, Kia, Hyundai Mobis, Hyundai Engineering & Construction, Hyundai Steel, Hyundai Glovis, Hyundai Transys, Hyundai Wia, Hyundai AutoEver, Hyundai Rotem, Hyundai Engineering, and Hyundai Kefico. The program targets over 6,000 suppliers dealing in parts, raw materials, and consumables.
The move aims to ease the financial strain on suppliers, who face increased expenses for employee bonuses and various wages, as well as payments for raw materials, during the Chuseok season. This is intended to help stabilize their operations and contribute to the vitality of the local economy.
Hyundai Motor Group has also encouraged first-tier suppliers to advance payments to second- and third-tier suppliers. This approach is designed to reduce financial uncertainty for these lower-tier suppliers and promote a positive cycle of early payments throughout the supply chain.
Additionally, employees of Hyundai Motor Group will engage in various community support activities to ensure that their neighbors can enjoy a more abundant and warm Chuseok holiday. They plan to deliver essential goods and meals to vulnerable groups and participate in volunteer activities, as well as support traditional markets and local farmers.
A representative from Hyundai Motor Group stated, "In light of the concentrated financial demands during the Chuseok holiday, we are advancing payments to our suppliers and engaging in volunteer activities to support traditional markets and local farmers. We will continue to work towards creating a cooperative ecosystem where suppliers and the local community can grow and share value together."
* This article has been translated by AI.
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