20 Korean conglomerates to pay W9.6tr early to suppliers ahead of Chuseok

Twenty major South Korean conglomerates will pay a combined 9.6 trillion won ($7.09 billion) early to their suppliers ahead of the Chuseok holiday.

The Korea Enterprises Federation and its Small and Medium Enterprise Cooperation Center announced Wednesday the findings of their survey on early payment of subcontracting and supply fees before Chuseok 2026.

The 20 groups that responded to the survey include Samsung, SK Group, Hyundai Motor Company, LG Group, Hanwha, Lotte, Posco, HD Hyundai, GS, Shinsegae, Hanjin, KT Corp, LS, CJ Group, Kakao, Doosan, Naver, Hyundai Department Store, Hyosung and Harim.

The groups moved up their payment schedules in recognition of the increased cash demand suppliers face around the Chuseok holiday. Some groups are paying as many as 23 days ahead of schedule.

The early payments are expected to help suppliers cover wages and raw materials costs, with the benefits expected to ripple through to second- and third-tier partner companies as well.

The major conglomerates are also running tailored support programs to bolster the financial stability of their suppliers and the welfare of their employees.

SK Group, LG Group, Lotte, Posco, HD Hyundai, GS, KT Corp, Doosan and Hyundai Department Store are using shared-growth payment systems, co-prosperity funds and partnership financing to ease suppliers' financial costs and strengthen their liquidity.

SK Group, Hanwha, Lotte, GS, Shinsegae, Doosan, Naver and Harim are providing suppliers' employees and franchise owners with Onnuri gift vouchers, holiday gift sets and merchandise coupons. Some groups are also offering bonuses and homecoming allowances to boost morale among supplier employees during the holiday season.

"This year, support has evolved beyond simple goods distribution into a more comprehensive form that encompasses low-interest financial assistance, welfare benefits, expanded sales channels and digital capacity building," said Chu Kwang-ho, head of the federation's Small and Medium Enterprise Cooperation Center. "We hope these multifaceted efforts will spread beyond second- and third-tier suppliers to the broader community, serving as a catalyst that brings warmth to a sluggish everyday economy."