|Title||Conduct early payment to suppliers before Chuseok|
- To help suppliers’ working capital operation
- Promote shared growth by using a stard subcontract agreement operating the win-win fund
Coway determined early payment to suppliers before Chuseok in order to help their working capital operation.
The company plans to pay costs of delivered goods to suppliers who want early payment out of over 200 ones 20 days ahead of the scheduled date of October 10. A total of KRW 2 billion is expected to be delivered in cash on September 20.
To ensure fair trade with suppliers, Coway uses a stard subcontract agreement distributed by the Fair Trade Commission complies with the principle "full payment in cash on the 10th of every month" in transactions with suppliers.
Moreover, Coway has been operating a win-win fund with the aim of helping suppliers secure financial soundness since 2011. A total of KRW 20 billion have been raised to loan them at low interest rates.
Gyo-won Lee, the head of SCM Division, said, "Early payment to suppliers was prepared considering they will need more money before Chuseok. We will continue a variety of win-win activities to ensure shared growth with our suppliers."