Jungheung Group pays contractors W70b early ahead of chuseok

Jungheung Group announced Monday that it will make early payments on construction contracts to help subcontractors of Jungheung Construction and Jungheung E&C manage cash flow ahead of the chuseok holiday.

The early disbursement totals about 70 billion won ($52 million) and will be paid entirely in cash. The group said the move is intended to ease financial strain on partner companies facing increased demand for funds before the holiday, including costs for raw materials and wages.

Jungheung Group said it expects the early payments to allow subcontractors to settle wages and material costs without disruption. The group made a similar move ahead of the Lunar New Year holiday earlier this year, releasing 100 billion won in contract payments early.

The early payment is part of what Jungheung Group describes as a sustained shared-growth management philosophy. The group said it has consistently identified high-performing partner companies each year and offered various forms of support, including incentives and exemptions from contract performance bond insurance requirements.

Kim Hae-geun, president overseeing Jungheung Construction and Jungheung E&C, said the company's role and corporate spirit lie in creating an environment where growth through cooperation is possible, especially when the construction market is struggling. "We will continue to actively practice shared-growth management with our partner companies," he said.

Meanwhile, Jungheung Group recently decided to donate 10 billion won to support a major development project in the Honam region and South Korea's semiconductor and AI cluster initiative.