Samsung to disburse 1.3 trillion won, up 110 billion won from last year

LG to advance payments by up to 13 days, totaling 600 billion won

Samsung Electronics employees browse products on an online marketplace operated ahead of the Chuseok holiday. [Samsung Electronics]
Samsung Electronics employees browse products on an online marketplace operated ahead of the Chuseok holiday. [Samsung Electronics]

Samsung and LG announced Monday they will make early payments to their suppliers ahead of the Chuseok holiday to help partner companies manage cash flow.

Samsung will disburse 1.3 trillion won ($966 million) in supplier payments before the Chuseok holiday break. The conglomerate increased the early payment amount by about 110 billion won compared with last year's Chuseok disbursement to help stimulate the domestic economy.

Thirteen Samsung affiliates are participating in the initiative — Samsung Electronics, Samsung C&T, Samsung Biologics, Samsung Bioepis, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung Heavy Industries, Samsung E&A, Cheil Worldwide, S1 and Samsung Welstory — each advancing payments by about seven days from their originally scheduled dates.

LG will also make early payments totaling 600 billion won to help its suppliers cover raw material costs and employee bonuses before the holiday. Eight LG affiliates — LG Electronics, LG Innotek, LG Chem, LG Energy Solution, LG Household, LG Uplus, LG CNS and D&O — will advance their payments by up to 13 days.

Meanwhile, Samsung is running a Chuseok online marketplace for its employees, selling specialty products from affiliate partner villages and goods manufactured by small and medium-sized enterprises through its smart factory program, as part of efforts to boost domestic consumption.

Thirty-one small and medium-sized enterprises that received support through Samsung Electronics' smart factory program are participating in the marketplace, offering 53 products including Korean beef sets and fresh fruit.

Samsung employees collectively spend about 3 billion won at the online marketplace each year across the Lunar New Year and Chuseok holidays, contributing to local economic activity.

LG is also running financial support programs — including a co-growth fund and direct lending — worth about 1.2 trillion won through seven affiliates (LG Electronics, LG Innotek, LG Chem, LG Energy Solution, LG Household, LG Uplus and LG CNS) to provide suppliers with interest-free or low-interest loans.


joze@heraldcorp.com