The limit of support for suppliers is 1 billion won for the first, 500 million won for the second and the third.
LG Electronics announced on the 19th that it will expand the support for the win-win cooperation fund to tertiary partners starting this year. The Win-Win Cooperation Fund has been operating for 200 billion won in cooperation with IBK and Korea Development Bank since 2010. Suppliers can use the win-win partnership fund to receive low-interest loans when they need funds.
The Win-Win Cooperation Fund was supported by primary and secondary partners that signed a fair trade agreement with LG Electronics until last year. Starting this year, third-tier suppliers can also receive loans using the Win-Win Cooperation Fund when they need funds. If a partner who is suffering from Corona 19 applies for a loan for funds, it will be the top priority.
According to LG Electronics, there are about 1,000 suppliers that can use the win-win cooperation fund, up more than 20% from last year. The support limit is 1 billion won for primary suppliers and 500 million won for secondary and tertiary partners. In the case of a’cooperation association’ member companies formed for close exchange and mutual development by partner companies, they can apply for up to 2 billion won.
In addition, various support measures have been prepared to help partners. Next month, LG Electronics will provide an interest-free fund of 40 billion won a month ahead of last year. Interest-free funds are used to build automation solutions, improve old facilities, and develop new technologies to increase the productivity of partners.
A win-win payment system is also operated to secure liquidity early. This is a method in which the first, second, and third tier suppliers receive cash early on the payment date for delivery based on the credit of large companies. According to LG Electronics, the amount paid by the primary partner to the secondary partner through the win-win payment system was about 530 billion won as of last year.
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