LG is taking steps to support its suppliers facing financial difficulties ahead of the Chuseok holiday by providing early payments and engaging in community service initiatives.
On September 14, LG Electronics, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, LG CNS, and D&O announced their decision to pay a total of 600 billion won in supplier payments up to 13 days earlier than originally scheduled.
This measure aims to alleviate the operational burden on suppliers, who typically experience a spike in temporary cash demands for raw material payments and employee bonuses during the holiday season.
LG's major affiliates operate financial support programs, including a 1.2 trillion won shared growth fund and direct loans, to assist suppliers in securing low-interest and interest-free financing.
The company is particularly focused on strengthening its collaborative framework to extend support benefits to second-tier and lower-tier suppliers. In July, LG signed a 'Shared Growth Agreement for LG's First, Second, and Third-Tier Suppliers' with the Fair Trade Commission, committing to allocate more than 10% of the shared growth fund to second-tier and lower-tier suppliers.
LG Display, LG Chem, LG Energy Solution, LG Household & Health Care, and LG Uplus are also planning various charitable activities, including the distribution of essential goods to vulnerable community members and employee volunteer work, in conjunction with the holiday season.
* This article has been translated by AI.
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