A view of Hyundai Department Store Group’s headquarters building. Photo courtesy of Hyundai Department Store Group
Hyundai Department Store Group said on the 6th that it will make early payments to small and mid-sized suppliers ahead of the Chuseok holiday.
The group will pay 273.8 billion won ($197 million) owed to small and mid-sized suppliers doing business with its affiliates on the 21st of this month, before the Chuseok break and up to nine days earlier than originally scheduled. The move is intended to ease the burden on suppliers facing funding pressure from a prolonged economic slowdown, high interest rates and high inflation.
About 10,000 suppliers will receive the early payments. They include some 3,000 firms that do business with Hyundai Department Store and about 7,000 that work with 15 affiliates, including Hyundai G F Holdings, Hyundai Home Shopping, Hyundai Greenfood, Hyundai Livart, Handsome, Hyundai Everdigm, Daewon Kang Up, Hyundai Bioland, Hyundai Futurenet, Hyundai Duty Free, Hyundai L&C, Zinus, Hyundai Dream Tour and Hyundai Easywel.
“We are moving up the payments for suppliers that are expected to have difficulty raising funds as demand for employee bonuses and various operating funds increases ahead of Chuseok,” an official at Hyundai Department Store Group said. “We will continue to develop a range of support programs so that we can grow together with our small and mid-sized suppliers, who have long been our partners.”