Hanwha Group to pay W185b early to suppliers ahead of Chuseok

Hanwha Group will pay approximately 185 billion won ($134 million) in trade payments early to its suppliers ahead of the Chuseok holiday to help them manage cash flow.

The group announced Sunday it would advance payments totaling 185 billion won to 1,580 partner companies, settling accounts ahead of the legally required due dates.

By affiliate, Hanwha Ocean will pay 55 billion won, Hanwha Aerospace 52.5 billion won, Hanwha Systems 24.5 billion won and Hanwha's construction division 14 billion won. The group said it decided on the early disbursement to ease the liquidity burden on suppliers facing a temporary surge in cash needs before the holiday — including bonus payments and raw materials costs — and to ensure that settlements flow smoothly down to second- and third-tier partners.

Hanwha Group has advanced holiday payments to suppliers every year as part of its commitment to mutual growth. It paid approximately 179 billion won early ahead of this year's Lunar New Year holiday as well. In his New Year's address this year, Hanwha Group Chairman Kim Seung-youn doubled down on the group's core co-prosperity philosophy of "go far together," saying, "The workers at our partner companies are part of the Hanwha family, and the local community is the ground on which Hanwha does business."

Major affiliates will also run holiday outreach programs for underprivileged residents near their worksites alongside the early payments. Hanwha Aerospace will deliver rice, refreshments and daily necessities to residents near its facilities in Daejeon, Changwon and Yeosu. Hanwha Ocean and Hanwha Solutions plan to hold holiday food-sharing events at key locations including Geoje, Ulsan and Daejeon.

The move is a concrete financial goodwill measure aimed at helping small and midsize suppliers secure liquidity amid a prolonged economic slowdown and high interest rates, while also contributing to price stability during the holiday season.