SM Group's three construction units pay subcontractors early ahead of Chuseok

SM Group's construction affiliates paid subcontractors their contract fees ahead of schedule to ease the financial burden on smaller partner firms during the Chuseok holiday season, when spending on raw materials, equipment rentals and employee wages tends to spike.

SM Group announced Tuesday that Samra, the construction division of SM Lines and the construction division of SM Steel had all made early subcontractor payments.

In the construction industry, short-term cash demands among partner firms tend to rise sharply before major holidays. Payments owed to materials suppliers and equipment rental fees often fall due at the same time as employee wages and holiday bonuses.

The financial strain on small and midsize subcontractors has grown further in recent months as the real estate market slump and rising raw material prices continue to weigh on the sector.

In response, the three affiliates moved up their payment dates, giving subcontractors more breathing room to secure the operating funds they need around Chuseok.

"We hope this early payment comes as a welcome relief to our partner companies, who are facing many difficulties as the construction market remains frozen," an SM Group official said. "We will continue to develop and carry out a range of measures to overcome challenges together and grow alongside our partners, based on mutual trust."

Meanwhile, SM Group has also been expanding its social contribution activities through non-construction affiliates. SM Group Chairman Woo Oh-hyun announced plans to donate about 7 billion won ($5.06 million) — equivalent to the national scholarships that incoming students in the 2027 academic year will lose — after Yeoju University was designated this month as a school restricted from national scholarship and student loan programs.