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🇰🇷 South Korea /Economy & Trade

Ottogi to pay 12.9 billion won owed to suppliers early ahead of Chuseok

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • South Korean food company Ottogi said it will pay 12.9 billion won owed to 22 suppliers early, in full and in cash, ahead of Chuseok.
  • The payments to OEM companies and raw-material and packaging suppliers will arrive an average of more than 50 days before the normal payment date.
  • Ottogi said the measure aims to ease the financial pressure on smaller partner companies amid weak domestic demand.

Ottogi said on Sept. 8 that it will pay 12.9 billion won in outstanding bills early and entirely in cash to help suppliers manage their finances before the Chuseok holiday.

The measure covers 22 companies, including original equipment manufacturers and suppliers of raw materials and packaging. They will receive payments for the previous month’s subcontracted work an average of more than 50 days ahead of the normal payment date.

The company said its ESG team operates an internal review committee for initiatives related to shared growth. Since 2015, Ottogi has also operated a shared-growth fund that supports low-interest loans for suppliers and distributors.

An Ottogi official said smaller partner companies face greater financial pressure because domestic demand has weakened. The company expressed hope that the early payments would help reduce that burden.

Smaller partner companies are facing greater financial pressure because of weak domestic demand. We hope this early payment of subcontracting bills will help ease that burden.

· Ottogi officialThe company explained why it is advancing payments to its suppliers before Chuseok.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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