Seohan to pay contractors early ahead of Chuseok holiday

Seohan Co. will make early payments of 35.95 billion won ($26.3 million) in construction and materials costs to its subcontractors, offering relief to partner firms struggling amid a prolonged economic slowdown.

The company said Thursday it decided to accelerate the payments to help contractors manage cash flow ahead of the Chuseok holiday, covering expenses such as holiday bonuses, wages and raw materials costs — at a time when domestic and international economic uncertainty is rising and concerns about a slowdown in regional construction activity are growing.

Under the early payment plan, 125 partner companies will receive full subcontracting payments in cash an average of 12 days ahead of their original due dates, giving them greater financial flexibility during the holiday period.

"We have consistently heard that conditions in the construction industry are difficult, and recently we are feeling that hardship even more directly on the ground," said Kim Byung-jun, executive managing director at Seohan. "At times like these, I believe the industry must support one another to overcome difficulties together and pursue sustainable growth through mutual cooperation."

Meanwhile, Seohan continues to advance its housing business. A public housing development of 802 units planned for the Hwajeong-dong area of Ulsan's Dong-gu is set to debut under a new brand.

Pre-sales are currently underway for "Namyangju Jinjeop Seohan Idaeum," a 512-unit public housing complex being built in the S-1BL block of the Jinjeop 2 public housing district in Namyangju, Gyeonggi Province.