HD Hyundai pays suppliers early ahead of Chuseok

HD Hyundai announced Thursday it will pay 376.2 billion won ($275 million) in materials costs to its suppliers up to 12 days ahead of schedule, ahead of the Chuseok holiday.

By affiliate, the breakdown is as follows: HD Hyundai Heavy Industries will pay 139.4 billion won, HD Hyundai Samho 86.5 billion won, HD Hyundai Electric 71.1 billion won, the refining division including HD Hyundai Oilbank 38.8 billion won, HD Hyundai Marine Engine 26.6 billion won and HD Hyundai Marine Solution 13.8 billion won.

HD Hyundai said the early disbursement will help suppliers manage increased cash demands during the holiday season, when companies typically face higher outlays for travel allowances and bonuses.

Meanwhile, five HD Hyundai affiliates — HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Marine Solution, HD Hyundai Electric and HD Construction Equipment — signed a "joint agreement for mutual cooperation" with their first-, second- and third-tier suppliers on Sept. 10, pledging to settle all supplier payments in cash or cash-equivalent instruments.

The move is intended to strengthen suppliers' financial stability, productivity, safety and technological competitiveness, extending the benefits of the partnership across the entire supply chain.