LG Uplus announced on the 16th that it will pay 30 billion won in cash to help secure liquidity for over 1,300 small and medium-sized partners ahead of the upcoming Lunar New Year. The additional payment date for deliveries before the holiday is set for Jan. 24.
The early execution funds will be provided to partner companies responsible for the delivery of wireless repeaters, wired network equipment, network construction, and IT development and operations. This will enable partners to utilize early secured funds for new product production, facility investment, and research and development.
Since 2014, LG Uplus has been promoting mutual growth with partners by executing delivery payments early before holidays such as Chuseok and the Lunar New Year. The cumulative amount of early executed delivery payments until this year’s Lunar New Year has reached 520 billion won.
Along with this, LG Uplus is also operating various support programs for the stable financial management of its partners. For over a decade, it has been running a "co-growth fund" in conjunction with Industrial Bank of Korea (IBK) to lend funds to small and medium-sized partners at low interest rates (1.9% to 3.3%), and it is also implementing a "direct funding support" program that directly aids partners in developing new products.
Additionally, programs are underway to enhance productivity and strengthen ESG, aimed at the sustainable growth of partner companies. Notable programs include the "Partner Proposal Day," which guarantees a certain level of purchase for excellent products and ideas from partners, consulting services for enhancing small and medium-sized enterprises' productivity and supply chain management, and a collaborative body named "Co-growth Board" for listening to and resolving issues faced by small and medium-sized partners.
Han Sang-eon, head of co-growth and purchasing at LG Uplus, noted, "To support the liquidity of partners whose demand for funds is increasing during the Lunar New Year, we decided to advance the payment of delivery prices. As a company recognized as the best in the co-growth index, we will continue to strengthen various win-win activities, such as early payment of delivery prices, the co-growth fund, and consulting support."