Ottogi to pay 12.9 billion won in subcontracting fees early ahead of Chuseok

Ottogi will pay 12.9 billion won in subcontracting fees early and in cash to 22 partner companies ahead of Chuseok, the company said on the 8th.

The recipients include original equipment manufacturers, raw-material suppliers and packaging companies. Ottogi plans to make the payments an average of about 50 days earlier than the normal payment date under its promissory-note schedule.

The company said it operates several programmes to support shared growth with its partners. Since 2015, it has run a shared-growth fund that allows partner companies and distributors to borrow at interest rates below those offered by commercial lenders.

An internal review committee led by Ottogi’s ESG team also discusses and improves key issues related to shared growth. An Ottogi official said, “As weak domestic demand continues, the financial burden on small and medium-sized partner companies is also growing. We hope the early payment of subcontracting fees will help ease that burden.”

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As weak domestic demand continues, the financial burden on small and medium-sized partner companies is also growing. We hope the early payment of subcontracting fees will help ease that burden.